DISCOUNT HEALTH INSURANCE PLAN WARNING

Seven North Carolina Better Business Bureaus and 148 Chambers of Commerce are receiving letters of caution from Insurance Commissioner Jim Long urging them to warn their members and citizens about the differences between legitimate health insurance and the increasingly common “discount plan,” a product often is marketed almost as if it is insurance, offering benefits at a low monthly rate.

While some of these plans are legal, they are significantly different from actual insurance and provide drastically different benefits. Many consumers, however, are fooled into thinking they are purchasing insurance at a low price, and are surprised to learn the discount plan may cost them more in the long run.