Is This the Next Big Trend in America...
They could be the hottest thing since phone cards and Wall Street and industry analysts are starting to take notice...
(PRWEB) August 20, 2002
Is This the Next Big Trend in America...
According to A. M. Best, a nationally recognized authority in analyzing insurance companies, it could be the fast growing business of Medical Savings Programs. In a recent article (Jul 2002), A. M. Best stated... "They could be the next rage after prepaid telephone cards, with results that are more profound than easy long-distance calling."
These programs are popping up all over the country to fill the huge gap in America caused by more than 40 million people without health insurance. Many of the uninsured are left paying full price for medical, dental, vision, and prescriptions as a result of not being able to obtain insurance. In most cases, these individuals are not covered due to pre-existing conditions, age restrictions, or they simply cannot afford the unreasonably high cost of today's health plans.
In addition, approximately 60% of the small business owners in the country do not provide healthcare for their employees. Many of them cite the huge increases in monthly premiums over the last few years as the primary reason. Unfortunately, the lack of a medical or dental plan can result in employers losing high quality workers that move on to find benefits elsewhere.
MMC Global Marketing. com, which promotes medical savings programs business to business, explains that consumers can experience major reductions in out of pocket costs because they are able to access one of the top PPO networks in the country and pay the same negotiated rates offered to many of the larger insurance companies. In exchange for these substantially lower rates, PPO networks help to steer customers to participating providers.
Even Wall Street has started to take notice of this billion dollar industry. In the May 9th edition of Investor's Business Daily, an analyst from Stonegate Securities noted that Care Entree Corporation (NASDAQ Symbol: PCIS), one of the industry leaders with 66% of the market share, could add more than 60,000 new members over the next year. The article went on to say, "There's a ton of demand."
Despite the apparent success of these programs, A. M. Best suggests that consumers not be lulled into thinking that they are a replacement for insurance. In fact, they are not insurance and pay out no claims. However, many satisfied users agree that they would much rather take advantage of a reduced bill for services than paying full price.
So, are these medical savings cards truly the next big trend in America? Only time will tell.
For more information, you can contact GrassRootsHealthcare at (800) 592-6471 or email them directly at info@grassrootshealthcare. com.
