Health Discount Plans Need Regulation
Washington state Insurance Commissioner, Mike Kriedler, is advocating regulating the currently unregulated health discount plans, that have become much more common over the past few years. Specifically, Mr. Kriedler would like to enact legislation that would make these plans financially responsible for paying the health care expenses that they advertise. Commissioner Kriedler states that he has received hundreds of complaints from customers who purchased these plans and received no benefits.
If his proposed bill passes, all discount health plans (offered in Washington) must be licensed by the Washington state Insurance Commissioner. They must clearly disclose that they are a health discount health plan and not health insurance. They cannot mislead the consumer and must list the services and products that are discounted.
The health plan bill recently passed the Senate and is up for a vote in the House.
If the legislation passes, Washington will join 33 other states in regulating discount health plans.The bill would take effect July 1, 2009.
