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Kansas, Wisconsin DOIs Warn Consumers to Beware of "Discount Health Cards"

Insurance commissioners in Kansas and Wisconsin are warning consumers to beware of companies soliciting discount health cards. "While these cards appear to be a form...
February 10, 2004

Insurance commissioners in Kansas and Wisconsin are warning consumers to beware of companies soliciting discount health cards. "While these cards appear to be a form of insurance, they are anything but real protection," said Kansas Insurance Commissioner Sandy Praeger. "Unfortunately, when people go to the doctor or hospital and attempt to use the cards, they find they are responsible for 100 percent of the costs." The Kansas DOI noted that some discount health care cards do offer legitimate price reductions, but they are still not considered health insurance. The department advises consumers to verify coverage with health care providers prior to purchasing discount cards, or call the DOI's hotline at 800-432-2484.
 
That consumer warning was echoed in Wisconsin. A bulletin notes, "the discount plans claim to offer coverage in a variety of areas such as dental, chiropractors, hearing and emergency care, they are not a viable alternative to comprehensive health insurance coverage. Discount plans can be cancelled at any time, do not guarantee advertised services or access to providers, and in the long run, cover only a small percent of medical expenses."
 
Praeger Warns About Discount Health Cards (Kansas, 2/3/04)
 
Beware of Discount Health Plans (Wisconsin, 2/2/04)

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