Florida Laws on Health Discount Plans

Most television viewers have seen commercials for discount health plans that give customers access to pre-set prices for medical services through a network of contracted physicians. The premiums and coverages make the plans sound attractive. In fact, it may sometimes sound too good to be true. Responding to complaints from consumers, Florida has passed laws regulating health discount plans.

License

• To do business in Florida, a health discount plan must be licensed by the Florida Department of Financial Services. Among the items that must be disclosed on the application are a list of providers participating in the plan, what services will be covered, the company's marketing method, consumer complaint procedure and the $50 license fee. The application must be updated and resubmitted each year, along with the annual fee.

Website

• Before getting a license, the business must open a website that includes a current list of providers. That list must be accessible to consumers.

Refunds

• The company must provide customers with a 30-day cancellation period, during which a consumer may receive a refund. Also, if the company cancels the consumer's contract for anything other than nonpayment, it must issue a pro-rated refund.

Prohibitions

• Florida law 636:10 prohibits the companies from advertising and marketing their plans as insurance. Also prohibited are terms that could mislead consumers into thinking they are buying health insurance, such as "health plan, coverage, copay, pre-existing conditions, guaranteed issue, premium, PPO and preferred provider organization."

Penalties

• Anyone who violates Florida law relating to health discount plans can be found guilty of a misdemeanor.