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Alternatives to Insurance

Insurance is designed to cover the insured person in the event of an injury, illness or accident, but high premiums and monthly charges mean many cannot afford to care for their most valuable asset--their health. Fortunately, there are alternatives to insurance that can help families and individuals at less cost.

  1. Service Discount Plans

    • Discount plans are purchased like insurance plans, but services are charged at a flat rate and doctors' services are charged at a discount instead of being dependent on type of injury. For example, if a person with an insurance plan gets a disease and requires treatment, the treatment may not be covered under the insurance plan if it is not a normal treatment for the diagnosed illness. With a discount plan, if the treatment is listed under the terms of the discount agreement, the patient will receive the treatment at a reduced rate. While this alternative to health and dental insurance is growing in popularity, there are several drawbacks. Insurance plans have a set deductible and patients do not pay over that amount unless their bills exceed a predetermined amount; discount plans simply charge less for each procedure, leaving the possibility of mounting costs.

    Preferred Provider Organization (PPO)

    • Especially useful for individuals who require treatment for long-term conditions, Preferred Provider Organizations (PPOs) are networks of medical facilities in a local area. These facilities can include doctors, hospitals, laboratories, dentists, optometrists, emergency rooms and even chiropractors. Paying for and using a PPO network plan is similar to using health insurance: if you get sick or require treatment, you must go to one of the "in network" facilities in your area. Because of the increased business volume that PPO networks provide, the cost is usually less than a standard health insurance plan.

    Prescription Drug Savings Cards

    • For some, medical services are not often required and the cost of insurance or even a discount plan is too high. These people may benefit most from a prescription drug savings card. These cards offer discounts on the most popular prescription drugs and help people meet the cost requirements for treating many long-term illnesses such as high blood pressure, diabetes and cancer. Many prescription drug savings cards have income requirements (such as maximum household income requirements and ineligibility for Medicare).

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