Medical credit cards are facing an investigation by the New York state attorney general. credit cards with a very high rate are marketed to patients that are in the office and need money now. These cards, which offer an instant money advance to settle medical bills, are often marketed with allegedly deceptive practices.
How medical credit cards work
Medical credit cards tend to be offered by one of a couple of financing companies. The card is intended to settle medical bills, but uses a very high rate of interest for the financing. The doctor or dentist will get their cash easily, and also the credit card company gives them additional cash based on how much is charged on the card.
The investigation into medical credit
Patients in a financial bind are likely to see medical credit cards as a good answer. The New York Attorney General is investigating the alleged deceptive practices of these credit cards. Most of the time, patients aren’t given full information on the high interest rates in these cards. According to the attorney general, the investigation will also consist of the kickbacks. Some doctors can be violating their ethical or legal responsibilities by pushing financial products.
Medical care’s high cost
The provisions of the new health care do address the cost of health care, but many changes have yet to happen. 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 to be a no credit loan product that will pay the bills. The end result is the high interest rates compound the debt problem. Until the high cost of medical care is addressed, paying for care could be a concern, with or without these medical credit cards.
