Oklahoma Deputy Insurance Commissioner James Feeley has been sending letters of caution to six Better Business Bureaus and 144 Chambers of Commerce, asking them to tell citizens and their members how legitimate lead services is different from "so-called diabetes insurance."
Actual insurance is not provided by these plans but rather, they offer significantly other benefits. People are misled to believe they are buying low price insurance. It’s later that they get to know how the wrongly used term “insurance plan” cost them more.
"Promoters of medical scams deliberately look for self-employed individuals and small business owners to take advantage of,” Feeley mentioned to the BBBs and Chambers in his letter.
How insurance for health is different from insurance plan
- Medical plans cost less and can be advertized in elevators, telephone poles, on road signs, etc.
- There is a set number of facilities, doctors, and other providers of health care.
- In case the doctor or health facility is not accepting the plan, you have to pay out of your own pocket the full cost for services.
- Insurance for health covers almost everything in the bill for services that have been approved (after coinsurance, deductibles, and/or co-payments are made), a plan gives just a discount on the health provider's full fee.
- It is the Responsibility of the insured person to pay for the charges insured in his or her visit to the health care facility. Issue reimbursements and medical claims are generally not processed to health care providers in these plans.
- Providing benefits to many, these plans aren't for everyone with diabetes. Think judiciously before signing. Be careful about "red flags" which may warn of a fraudulent plan.
Question the insurance if the "Red flags" have:
- Advertising practices that can be questioned, like spam emails.
- Tall claims of ensuring big savings on health services and products.
- No facility for giving you a list of providers who accept the insurance even after you bought the plan.
- Marketing tricks to pressurize you, such as "one-time offer" or “pay now”.
- Asking you to stop the existing health insurance.
Be cautious of the people and promotions that have terms like "premiums, co-payments, and health plans". It is just a bait to lure you.
Remain away from people or firms who give stress on debit or credit information. Directly question the person if the product is merely a discount offer or a health insurance plan.
Many Oklahomans are looking for affordable insurances after the hike in premiums. Obviously, this has triggered aggressive marketing of diabetes insurance plans.