Discount Plans Offer Viable Alternative to Traditional Health Insurance

n light of recent events with the economy, consumers are searching for more affordable ways to save on the increasing costs of healthcare and health insurance. The average cost of a family insurance policy has topped $12,000 a year. While most families are fortunate enough to be part of group plans and therefore are only paying a portion of that premium, the premiums continue to rise resulting in a larger amount workers have deducted to pay for health coverage. For those not covered by their employers, these premiums must be paid completely out of pocket, not to mention the co-pays and deductibles associated with insurance plans. For the unfortunate 47 million Americans without any type of health coverage and another 100 million without dental coverage, the costs of healthcare for themselves and their families can be astronomical.

Consumer driven healthcare plans are an increasingly popular option in the healthcare industry. The basic concept behind consumer driven healthcare is that although deductibles will be higher, monthly premiums will be significantly less, therefore substantially reducing healthcare costs over the long run. Discount health and dental plans fall into this category. Instead of paying hundreds of dollars in monthly premiums, the cost of discount plans are a fraction of the cost. When members go to a provider (doctor, dentist, chiropractor, etc) instead of paying full price, as they would without any type of coverage, the consumer pays at discounted rates.

The various benefits of discount plans over traditional insurance are many. For example, there is typically no waiting period, no limit on the number of services or visits, no age restrictions or physicals, no paperwork or claims, and ongoing medical conditions are accepted. In many cases, especially with dental insurance, consumers could pay less for services received with discount plans than with conventional insurance due to plan limitations, deductibles and caps.

For those who cannot afford insurance, those who cannot obtain traditional plans because of pre-existing conditions or those in need of supplemental benefits, discount health and dental plans might be a viable alternative. The discounts will vary from company to company and therefore it is important to research the various discount plans available.