Medical credit cards are facing an investigation by the New York state attorney general. These high-rate credit cards are marketed to patients that need cash now, often when they’re already within the doctor’s office. These medical credit cards offer an instant cash advance to patients who need help.
The operational workings of medical credit cards
Medical credit cards are a product offered by a couple of financing . The financing is intended for medical bills, but it also charges a very high interest rate. The medical provider is typically paid within a few days of the credit card charge and gets a rebate (aka additional money) based on how much is charged on the card.
Investigating medical credit cards
Patients in a financial bind are likely to see medical credit cards as a good answer. Alleged deceptive practices have led to an investigation into these cards by the New York Attorney General. Most of the time, patients aren’t given full details on the high interest rates in these cards. According to the attorney general, the investigation may also include the kickbacks. Some doctors can be violating their ethical or legal responsibilities by pushing financial products.
The incredible costs of medical care
Though the new health care bill has various provisions that are intended to address the high cost of medical care, numerous changes have not yet taken effect. The leading cause of bankruptcy in the United States is medical cost. The credit card marketing for these products are set up in a way that they’re designed to be a no credit loan product that will pay the bills. In the end, though, they end up charging very high interest rates and fees that compound the problem. Medical credit cards grew out of the truth that medical bills are a huge concern – and until medical costs are addressed, products like this will exist.
