The FTC recommendations
The Federal Trade Commission (FTC) protects consumer rights and tries to take steps towards stopping scammers in various industries, including healthcare and healthcare insurance.
As per the FTC website, “People can learn that medical discount plans aren't health insurance, and they're not a substitute for health insurance. And in some instances, these plans are just flat-out scams.”
They recommend the following steps to ensure that the company is legit:
1. Contact your state Insurance Commissioner or Better Business Bureau (BBB) to find out about the company. For some companies BBB is the safest bet.
2. Find out about the medical discount plan company through research.
Some warning signs they highlight are:
Specific discounts or saving promises like 80% off a specific surgery or benefit.
If the marketing is only online with no written information about the plan.
You must buy immediately or you will lose a discount offered.
Checklist for before you sign-up for a discount medical plan
So what are the steps you should take before paying the subscription fee for the health care discount membership plan?
✓ Check the official website – There should be a professional design, clear contact details, and more than one customer service option.
✓ Online reviews – Search on various websites to find reviews, some new start-ups don’t have reviews so look for potential partnerships they may have.
✓ You can find fraudulent sites by searching the “[Company Name] scam” and see if others reported fraud.
✓ Check for hidden fees – Are there any cancellation fees, or random price increases without notifications.
✓ Know the cancellation process – If it's unclear, it's a no go.
✓ Use credit cards or PayPal to pay not wire transfers so you can claim fraud if needed
✓ The site should be a secure website https://, not just http://.
✓ Avoid a “limited-time offer” forcing fast action, be cautious.
✓ Send an email or call to see how they handle inquiries.
✓ Ask specific questions and look for clear answers. Scams will never give a straight answer.