While the United States government is hammering out healthcare reform, many patients are toeing debt for medical services they have received and paid for with credit cards designed for medical bills. These accounts allow a patient to charge their healthcare and allow medical professionals such as doctors and dentists to collect payment for services rendered immediately. In some cases the credit is used to pay for elective services, but in many cases it is utilized for needs like dental care and eyeglasses. Some medical offices now require those who cannot pay for services when rendered to sign up for these accounts in order to receive services at all.
The problem is that medical credit lines can be as high as $40,000 and just like a standard credit card often offer an “introductory†period. If the patient pays the debt off in an established amount of time, they will have paid interest rates similar to an ordinary credit card. However, missing a payment often causes a jump in interest rate as much as 28%.
The company extending the credit profits as much as 13.5% of the amount charged according to Consumer Reports. The medical providers profit by having more patients to treat. The credit card companies target the uninsured and underinsured, and medical providers that offer services not often covered by insurance such as eye and dental care. By offering these credit lines, more patients who are already heavily in credit card debt and might delay obtaining medical care will undergo treatment because they have the option of paying with credit.
Caution is necessary when signing on for one of these healthcare credit lines. Reading and understanding the terms of any credit card is important, but being under the duress of needing medical care can cause even the most careful consumer to overlook the obvious.
I, myself, am 16,552 dollars in credit card debt due to medical costs.