Frequently Asked Questions
How do Discount Medical Plan Organizations Work?
DMPOs contract with doctors and other health providers to accept reduced fees in exchange for a potential increase in patient volume from DMPO members. Some DMPOs cover health, dental, vision, hearing, mental health, and pharmacy services. A few offer discounts on holistic care and access to nurse-on-call hotlines. Others limit coverage to prescription medication. Monthly costs vary and some plans charge no fees, although these plans typically only offer prescription medication discounts.
Are you a member of Costco or BJ’s Wholesale Club? If so, the DMPO model is familiar to you. By completing an application and paying an annual or monthly fee, you receive a membership card. At the end of your doctor’s appointment, you pay the bill, but—as a DMPO member—the cost of those services is “marked down.” Doctors and other providers are willing to offer these discounted rates because DMPOs give them higher patient volumes. Providers, in other words, trade lower profit margins for higher patient volumes.
DMPOs do not reimburse you for any costs.