If you're a medical provider looking at new marketing options, it's important to avoid unintentionally violating insurance laws by having your patients pay a fee in exchange for services or discounts.

You need an insurance license to offer some discount plans

Discount plans are popular among providers, and there are many names for them. However, under state law (RCW 48.44.011), you often must be a licensed insurance producer to offer discount plans.

If you accept prepayment for health care services, you likely fit the legal definition of a health care services contractor (HCSC). HCSCs must be licensed with us.

If you offer discount plans without a license, you might face penalties. These include fines.

What you can legally offer without an insurance license

It's OK to offer plans without fees. For example, you can offer the following discounts:

  • Buy one, get one at X% off.
  • Buy Service A at full price and get a voucher for an additional Service A at X% off, expiring in six months.

Other options include coupons, gift cards for your services and other incentives. Vouchers that expire in 12 months or less will encourage patients to think of your program in yearly terms.

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