Considering A Medical Discount Card? BBB Urges Caution

WALLINGFORD — Connecticut Better Business Bureau advises: Consumers, beware of “medical discount cards.” They may appear to be health care money-savers, but they are not a replacement for medical insurance and significant dissatisfaction has been reported regarding their limitations.

Economics is driving consumers to find alternatives to comprehensive health care insurance. Premiums for family coverage have jumped 3½ times faster than wages since 1999, according to the human resources firm Hewitt Associates.

Connecticut BBB President Paulette Hotton Scarpetti suggests consumers to do their homework and research before paying for a discount medical card.

“Everybody is searching for ways to save money as the cost of health insurance continues to rise,” she said in a release from the agency. “But consumers should know that these discount cards are causing confusion because they are not a form of health insurance, and are not subject to the same regulatory oversight as insurance.”

The BBB has received complaints alleging that medical discount cards are not accepted by all pharmacies or physicians, as well as extreme disappointment with the lack of convenience and actual savings.

Complainants said they were misled by advertising, and duped by sales pitches promising savings of hundreds, even thousands of dollars. They later found out the discount cards were accepted by a limited number of physicians and pharmacies, making them extremely inconvenient to use. Some consumers say they were robbed outright by telemarketers who sold them a program, but instead, took their money and disappeared.

Consumers interested in buying a discount medical care card or program should first ask the following questions and request answers in writing:

1. What is the actual annual cost of the plan?

2. What are the benefits of the discount? What health care products and services are covered, and which are not covered?

3. Which local health care providers and facilities accept the discount card? If the sales person refuses to provide a list, BBB cautions consumers not to do business with them.

4. Who may I call in the event of a problem with the discount plan, may I cancel my membership at any time, is there a cancellation fee, and what is the refund policy?

As with many time-limited offers, BBB cautions to steer clear if consumers are pressured to “act now,” and be extremely wary of telemarketers, especially if the salespeople or discount card companies insist on debit card or bank account information, or require payments be wired directly to the company.

Before making a purchasing decision, consumers should first verify a company’s Reliability Report and find other trustworthy advice on consumer health care issues at www.bbb.org.