Discount Cards

[Crabcake Johnny]

Discount cards are often scams because doctors do not reprice - nor are they are they required to unless under contract.

The "con" is these discount sites will display a network logo - say PHCS. Of course, the prospect runs a search and wow...they're doctor takes the plan.

However, here's the rub. The discount card companies often do not have a contract with the network that forces providers to reprice.

So unknowing clients buy the discount card, see a PHCS or "Beech Street" doctor and nothing gets repriced.

By the way, pay careful attention to any company affiliated with Beech Street - a scam warning

 

[ABC]

Ok first you state you not in the insurance business anymore. Now you state your in a MLM.

Are you selling fruit juice that cures cancer too?


I don't find you as a creditable source of information.

 

[HomeService]

So, what we learned here: selling mlm discount cards is cheesey and like selling fruit juice cancer cures at the flea market? And a good way to advertise said health discount cards is cardboard signs on telephone poles?

 

[myinsurebiz]

You should sell it at flea markets, Billy Mays style...

I'll bet you'd be good at that.

Actually - that's great advice. I have several wholesale clients that do just that. Flea Markets provide the demographics and an instant audience. Well Done!

cardboard signs on poles would be another one. You always attract the brightest people with that kind of marketing.

Again - great advice. Except - you would be surprised about the "caliber" of people that respond. you think you are being funny - but, I've gotten some high producing reps from pole signs and yard signs. In addition - I've operated a Sign Company since 2003 - www.superquicksigns.com - you wouldn't believe the amount of bandit signs people have screen printed.

I presume this is an employer plan . . . since HRA money is employer contributions only.

Well - it can be self employed as well. Those that are employed can send one of our simple brochures to their employer and we'll follow up ( well - I won't , but one of my distributors might ) with the employer. If they are self employed - we'll show them how to hire their spouse or do a simple corporation and pay themselves. All available via a Section 105 Plan.

Tom

 

[myinsurebiz]

#1 - Discount cards are often scams because doctors do not reprice - nor are they are they required to unless under contract.

#2 - The "con" is these discount sites will display a network logo - say PHCS. Of course, the prospect runs a search and wow...they're doctor takes the plan.

#3 - However, here's the rub. The discount card companies often do not have a contract with the network that forces providers to reprice. So unknowing clients buy the discount card, see a PHCS or "Beech Street" doctor and nothing gets repriced.

#4 - By the way, pay careful attention to any company affiliated with Beech Street - a scam warning

1) What? The vendors don't reprice - the TPA does. LOL - every vendor that is listed in the discount card network - is under contract and are fully aware of their obligations.

You don't have a clue how most plans today work do you? We ( the TPA ) actually 3-ways a card holder in with the vendor for the card holders initial visit. It's all legit and upfront. Your information is incorrect. In addition - groups like Careington, Health Right, etc - all have the same pre-visit practice . . .

The "real" players follow the "real" rules since most states have Discount Medical Plan Organizations (DMPO) register with the State's DOI or other oversight entity.

2) No "con" with our group. The vendors are listed in the directory AND the pre-visit welcome call is made. Again - your information is incorrect.

3) Not so with our Network. See above above pre-visit welcome calls. Don't you think a "con" would be discovered during this process?

4) Your proof to back up this rediculous statement is . . . ?

So, what we learned here: And a good way to advertise said health discount cards is cardboard signs on telephone poles?

It works!

#1 - Ok first you state you not in the insurance business anymore.

#2 - Now you state your in a MLM.

1) I never stated that I wasn't in the "insurance business" anymore. I stated that I wasn't presently promoting my Medical Savings Card program direct anymore - just through wholesalers. Please quote me correctly if you feel the need to quote me . . .

2) No - I state that I operate an Insurance Product based MLM type program. Again - see #1 . . .

Tom

 

[J.R.]

On what basis do "most" DOI's discourage this practice.

Actually most State's DOI discourage this practice. You may call the billing office or office manager at your vendor / facility and give them the procedure codes and ask for a pre-visit repriced quote.

Or - if you wish you may always forward an email to the TPA requesting this information before visiting a vendor and seeking services.

Back in the day we could use a redacted invoice display - but were chastised by several DOI's and the Networks disallowed this practice.

Tom

 

[Paradigm]

On what basis do "most" DOI's discourage this practice.

Tom again you demonstrate your ignorance

PPO discount plans are sold by unlicensed reps so how could they be regulated at all by the DOI they are outside their authority.

Constantly on these boards you demonstrate to me and others that you are a bad apple in our industry

 

[myinsurebiz]

On what basis do "most" DOI's discourage this practice.

Sal - starting around 2003 many States started requiring discount card organizers to register as a DMPO - or Discount Medical Plan Organization.

They did this to regulate how a group marketed their product in their State. Most require it - some don't.

States like Florida and South Carolina make it virtually impossible to profit from the biz.

Back in 2004 - our company was issued a memo from our main network supplier, concerning certain marketing do's and don'ts in the industry - copied invoices was decided a no no.

I didn't make the rule - just followed it.

#1 - PPO discount plans are sold by unlicensed reps so how could they be regulated at all by the DOI they are outside their authority.

#2 - Constantly on these boards you demonstrate to me and others that you are a bad apple in our industry

1) I know many "licensed" agents that market Medical Savings Plans to their clients as an add on. You'd be surprised what a DOI can do . . .

2) "Bad Apple" ? Please explain how? Because I think outside the box? But - you know what they say about "opinions"?

Tom

 

[Crabcake Johnny]

Well in MD hospitals are not allowed to accept discount cards - so at least you won't be marketing here.

 

[somarco]

in MD hospitals are not allowed to accept discount cards

What regulatory body prohibits them from accepting the cards? I am not defending the action, just curious.