Discount health options are meant to help reduce the costs of medical care for people who do not have traditional health insurance. A health insurance plan is more flexible and provides a wider range of coverage options.

Health Insurance Pays the Doctor Directly

One of the biggest differences between a health insurance plan and discount health options is that the health insurance plan will accept bills directly from the doctor's office. With a discount health plan, you pay the entire doctor bill yourself. When you use a health insurance plan to cover your medical expenses, you usually get a bill that informs you of the portion of the payment you are responsible for after the insurance company has made its payments. With a discount health plan, you will not receive any extra assistance when paying your bill.

Discount Health Plans Reduce Overall Rates

The way a discount health plan works is by negotiating lower rates with specific doctors, clinics, and hospitals. Once you pay a premium to the discount health plan, you are eligible to receive those lower negotiated rates from the institutions that are affiliated with the discount plan. The plan will offer you a flat, fixed rate for services from certain doctors. Discounts are generally between 20-60% off of the amount the medical facility would have charged an insurance company for the same service. Some plans can provide rate discounts of as much as 80%, though those kinds of savings are rare.

Procedures that are Generally Covered

When you purchase a traditional health insurance plan, you are covered for almost any type of non-elective medical treatment. Discount health plans are not quite as comprehensive because they rely on a relationship with each medical facility. You may find that your initial doctor visit and lab tests are available at a reduced rate through a discount health plan, but the specialist that you need to see about your condition may not be covered. With a traditional health insurance plan, there are usually ways to receive coverage for any type of specialist that your general practitioner recommends.

Choosing Which Type of Plan Works for You

In general, most people find that traditional health insurance coverage is their best option. It is more flexible and provides more comprehensive coverage. Health discount plans are a good substitute for someone who cannot afford a traditional health insurance plan. The savings you receive through a discount health option allow you to visit the doctor when necessary and take some of the financial stress out of maintaining your health. If you cannot afford to join a traditional health insurance group, the next best thing is a discount health plan that cuts some of the costs.