New law requires medical discount plan organizations to be licensed

Beginning July 1, 2008, medical discount plan organizations doing business in Oregon must be licensed by the Department of Consumer and Business Services (DCBS).

House Bill 2221, approved by the 2007 Legislature, establishes a licensing program for medical discount plan organizations and provides protections for consumers. These organizations, for a fee, give consumers access to discounts for medical and related services from providers who have contracted with the organization.

A medical discount plan organization must:

• have a written contract with providers or provider networks who offer services at a discount,
• provide a free-look period for purchasers of plans with a 30-day right to cancel,
• have a toll-free customer assistance number, and
• comply with refund requirements, advertising restrictions and disclosure standards.

Laws governing discount medical plan organizations are in Chapter 742 of the Oregon Revised Statutes ( ORS 742.420 through 742.440). The DCBS Insurance Division adopted administrative rules to implement the licensing program. These rules may be found in OAR Chapter 836, Division 200.

Forms

• Discount Medical Plan Organization Application
• Discount Medical Plan Organization Renewal
• Appointment of Insurance Commissioner for Legal Service

Questions?

Please contact Linda Rothenberger, 503-947-7227, or linda.j.rothenberger@state.or.us