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A buyers club can help

beat down health costs

For Tracy Moulton, a 33-year-old in Houston, maintaining her appearance is a professional imperative.  It doesn't come cheap, however, and her insurance won't cover steep fees for procedures like laser eye surgery.  So three years ago, Moulton decided to try a new approach to keeping her health costs down.  She signed on with AmeriPlan of Dallas, one of a half-dozen or so companies that charge a fee to connect members with doctors, dentists, vision centers, and other providers.  The lure is deep discounts on health services and prescription drugs.  "I just did the math, and it make sense," says Moulton.

These new companies, founded in the past decade, aren't considered insurers.  "You don't get any coverage for the premium, just discounts," says Thomas Rice, professor of health services at the University of California-Los Angeles School of Public Health.  They're more like buyers clubs for groceries and other household goods. 

"Think Price Club and Sam's Club," says Dennis Bloom, who runs AmeriPlan with his twin brother, Daniel.

. . . with out-of-pocket spending for healthcare sky-rocketing - Americans shelled out almost $200 billion in 1998 from their own wallets, up almost 40 percent from 1990 - the plans have mass appeal.  AmeriPlan, for example, covers 1 million people, and members like Moulton think they're getting a good deal.  After tallying last year's health bills, including LASIK eye surgery and pricey tooth-whitening and bonding procedures, she says she pocketed close to $4,000 in net savings.

Cut-rate cleaning.  She and other AmeriPlan members pay $12 a month for individuals and $20 for households.  AmeriPlan discounts are available from nearly 18,000 dentists in 49 states and from 12,000 vision care centers and independent eye doctors; they include savings of 20 percent on laser eye surgery and 80 percent on dental cleaning.

These arrangements can make sense for families with beefy health expenses that their insurance won't cover, such as orthodontia and prescriptions.  People whose insurance has high deductibles can also reap savings; they might otherwise have to pay the full cost of a procedure or drug out of pocket.

Before joining, take a hard look at the quality of the medical and dental services your buyers club offers.  "With these businesses, there's no telling who these providers are," says Rice, who speculates that doctors with the best reputations and busiest practices might not need to drum up business by joining a discount plan.  The health plans say that the convenience of not having to deal with claim forms and HMOs is a draw for high-quality providers.  Check with the American Dental Association, which logs certified dentists, and your state's medical board, which maintains physician profiles.

The entire article is quite lengthy, so we have included an exerpt here.  A copy of the complete article will be furnished free of charge, upon request.