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Baby boomers, seniors need to use caution when buying discount medical cards

With the economy in shambles and layoffs climbing, baby boomers and their parents may be tempted to buy discount medical cards to save money on healthcare costs.

Don't be tempted by the cards unless you research offers carefully to determine how they can meet your specific medical needs.

Discount medical cards save subscribers money by offering discounts, for a monthly fee, on healthcare needs such as physician visits, hospital stays, and prescription medications.

However, the Better Business Bureau points out that the cards aren't healthcare insurance and aren't subject to the same type of regulatory oversight as insurance. In addition, the cards aren't accepted by all physicians or pharmacies.

The bureau has received complaints from consumers who signed up for discount medical card programs and were extremely disappointed with the lack of convenience and actual savings. Consumers say they were:

  • Misled by advertisements and duped by sales pitches into thinking they'd save hundreds, or even thousands of dollars, but later found only a limited number of physicians and pharmacies accepted the cards, making their use difficult and inconvenient.
  • Scammed by telemarketers who sold them on a program but took their money and ran.

The bureau advises that, before signing up for any discount medical card or card program, consumers should ask the following questions and obtain the answers in writing:

  • What is the annual cost of the plan? Don't be swayed by exaggerated savings claims. "Up to 40 percent" doesn't mean a guaranteed 40 percent savings.
  • What are the benefits of the discount? What healthcare products and services are covered? Which ones aren't covered?
  • Which local healthcare providers and facilities accept the discount card? If the sales person refuses to provide a list of providers, consumers shouldn't do business with them.
  • Who do I call if I have a problem with the discount plan? Can I cancel my membership at any time? Is there a cancellation fee, and what is the refund policy?

Consumers should steer clear if they're pressured to "act now," because it's a "one-time offer." They should be extremely wary of telemarketing calls. In order to avoid the threat of identity theft or being scammed, consumers shouldn't do business with salespeople or discount card companies that insist on debit card or bank account information or require that payment be wired to the company.

Before buying a discount medical card or plan, consumers should check out the company on the bureau Web site at www.bbb.org.

Copyright 2008, Rita R. Robison, Consumer Specialist

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