Discount Health Care Cards Pose As Health Insurance

AUSTIN, July 5, 2008 - If an insurance offer sounds too good to be true, it probably is and it is probably not insurance. Many small business owners and uninsured individuals find this out the hard way. Across the nation dishonest Discount Health Care Card (DHCC) companies are swamping business fax machines with flyers that appear to be associated with health insurance companies.

The 80th Texas Legislature designated the Texas Department of Licensing and Regulation (TDLR) to license and regulate operators wishing to do business as a discount health care company in Texas. Beginning April 1, 2008, all discount health care card companies were required to be registered and licensed.

Today TDLR knows first-hand what the flyers look like; on a daily basis TDLR receives these misleading flyers and we are doing something about it.

The blast fax Discount Health Care Card flyers contain:

• Insurance-like language
• No restrictions for pre-existing conditions
• Extremely low rates
• Limited time offer advertised expiring soon (usually the day flyer is received)
• Graphics that are similar to those used by the pharmaceutical and medical industries
• A toll-free phone number

Discount Health Care Cards are NOT health insurance. They are non-insurance plans that offer consumers access to health care services at discount rates. Before purchasing the plan consumers are encouraged to confirm the company is licensed with the Texas Department of Licensing and Regulation. Currently twenty-four operators are registered with TDLR. To review a list of the companies visit http://www.license.state.tx.us/LicenseSearch.

Lastly, before purchasing a discount health care plan the consumer should make sure the listed doctors, dentists, and other health care providers honor the program and discounts given.

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