Healthcare Discount Plans

Summary

This practice note details operational and regulatory compliance matters for healthcare discount plans. Discount plan licensing and registration, reporting requirements, the impact of the National Association of Insurance Commissioners (NAIC) Discount Medical Plan Organization Model Act on state regulation of discount plans, and key issues to consider when advising a client engaged in the marketing, sale, and administration of discount plans are discussed. The focus of this practice note is on discount plans offering discounts on medical services provided by physicians. Although it touches on issues of concern to dental, vision, and pharmacy-only discount plans, review your state's laws and regulations addressing those types of discount plans because they may be subject to special rules, or alternatively, they may be exempt from rules that apply to healthcare discount plans.