Insurance Department Now Regulating Discount Medical Plans

A recently enacted Ohio law places new requirements on discount medical plans to provide greater consumer protection and gives the Ohio Department of Insurance certain oversight authority over the previously unregulated plans. Discount medical plans secure negotiated price discounts and charge consumers a monthly fee. With a discount medical plan, a person pays a monthly fee and receives discounts from doctors and hospitals within the plan’s network. Discount medical plans are not insurance because the member remains responsible for paying all medical bills. The new law requires that all advertisements and sales materials clearly state that the discount medical plan is not insurance. 

The new law requires discount medical plans to have written agreements with network doctors and hospitals to ensure that consumers receive promised discounts. The plans also must comply with other disclosure, policy cancellation and refund requirements. The new law gives the Department authority to investigate and take action against discount medical plans that violate the law. For more information go to the ODI web site at www.ohioinsurance.gov