(Washington, DC) The Government of the District of Columbia Department of Insurance, Securities and Banking (DISB) today issued a consumer-alert warning*  for District residents seeking discount health cards.

"With health care premiums on the rise, it is understandable that many people, especially our seniors and low-income residents, would search various sources for more affordable insurance," said DISB Acting Commissioner Thomas E. Hampton. "However, it is important for them to know the difference between health insurance and a discount health card, and to be able to distinguish between legitimate and fraudulent discount cards."

Hampton said that consumers should do their research before purchasing discount health cards. Legitimate discount cards offer discounts on services from doctors, pharmacists, etc., who accept these cards. However, discount health cards are not insurance, and they offer fewer protections for the consumer. DISB does not regulate the entities that sell discount health cards. Some of the protections that consumers can do themselves, according to Hampton, include double-checking the company and agent.

By contacting the District of Columbia Office of the Attorney General or the Better Business Bureau, consumers can look into whether complaints have been logged against a particular individual. Also, check the benefits. Many of these discount plans may exaggerate the savings potential and promise discounts that might not be available. He also added that consumers should always ensure that the plan has a toll-free phone number for customer service, a reasonable complaint procedure, and clear refund and cancellation policies.