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The California Department of Managed Health Care (DMHC) has finally taken action against companies that sell cards which promise to lower the cost of medical care. Unfortunately, these cards are not usually worth the paper they are printed on. According to the DMHC cease and desist order three separate "discount" card companies have "operated as a health care service plan without a license" and engaged "in prohibited price advertising using terms such as using "up to," in fraudulent, deceitful, or misleading advertising of non-existent discounts and of indefinitely extended limited-time offers in violation of Health and Safety Code section 1395." (see page 5 of the cease and desist order.) DMHC has also issued a issued a Consumer Alert, saying that "discount cards can be hazardous to your pocket book. Unscrupulous marketers falsely promising huge discounts on medical care are preying upon vulnerable Californians desperate for affordable alternatives to high health-care insurance." Further, in the Consumer Alert, DMHC says "Consumers beware - discount plans are not insurance - you must still pay all of the medical bills." I applaud DMHC for taking this action. I only wish that they had taken this action sooner. For additional information on DMHC's action see the California Healthcare Foundation article on their California Health Line website. Also see an article in an on medical discount cards in this Oakland, California newspaper. |
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