What’s the Difference Between a Discount Plan and Insurance?

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Looking for health insurance? If so, make sure that’s exactly what you’re purchasing, otherwise, you could end up with huge medical bills without a way to pay them. There are many misleading marketers out there that make it sound like they’re selling cheap health insurance when they’re selling a medical discount plan instead.

While medical discount plans can be useful for some people in saving dollars on healthcare costs, they aren’t the same as health insurance and should never be substituted for it.

If you’re unaware of the differences between a discount plan and health insurance, keep reading so you won’t be fooled.

What’s a Health Insurance Plan?

First, let’s cover exactly what a health insurance plan is.

A health insurance plan typically covers a big selection of services and pays you or your health care provider for a part of your medical expenses.

What’s a Medical Discount Plan?

When you sign up for a medical discount plan, you usually pay a monthly fee to receive discounts on certain services or products from participating providers. It’s important to note that medical discount plans do not pay for your health care expenses.

The idea is that medical discount plans will save customers money on products and services that health insurance may not cover. These can include dental, vision, hearing, or chiropractic services. Some individuals automatically receive discount schemes through their health insurance companies, while others may purchase separately.

There are many medical discount plans that offer legitimate discounts that can benefit buyers. However, some aim to grab people’s cash without offering much in return.

Sneaky and dishonest marketers often make it seem like they’re selling you health insurance instead of a medical discount plan, or they lie about what their scheme offers.

How Do I Avoid a Discount Plan Scam?

Thankfully there are ways to avoid a discount plan scam. Keep an eye out of flashy ‘up to’ discount adverts, such as ‘Discounts of up to 80%’. Genuine discount plans offer a lot less, and you shouldn’t trust savings promises that are that high.

If you’re confused about whether a plan is a health insurance plan or a discount plan, always feel free to confirm with the supplier. If you’re interested in signing up for a discount plan, check whether the doctors and establishments you use are included, so it makes sense for you to join.

Be sure to speak to your providers directly before you enroll or pay any fees too. Some fraudulent plan promoters may claim that specific doctors are involved when they aren’t, or they may even send you old lists.

Health Insurance or Discount Plan?

If you follow our advice, you should be able to find a genuine discount plan, if that’s what you’re looking for.

But if you’re seeking reliable and professional health insurance, we’re here to help. Whether you require individual, family, or dental insurance, we have plenty of products to help you stay healthy. Check them out here.