In New York state, the attorney general has launched an investigation into medical credit cards. These cards, which usually have very high rates, are sold to patients that need money now, generally right within the doctor’s office. These cards are sold as an instant loans advance to pay down bills, rather than an actual credit card.
The workings of medical credit cards
A few financing corporations specialize in medical credit cards. The financing is intended for medical bills, but it also charges a very high interest rate. The medical provider is usually paid within a couple of days of the credit card charge and gets a rebate (aka extra cash) based on how much is charged on the card.
Medical credit cards being investigated
For some patients, medical credit cards appear to be the easy answer. The New York Attorney General is investigating the alleged deceptive practices of these credit cards. Many of the time, patients aren’t given full data on the high interest rates in these cards. As outlined by the attorney general, the investigation may also consist of the kickbacks. By wearing the hat of both a finance adviser and a medical adviser, doctors may well be violating both their ethical and lawful responsibilities.
Medical care’s high cost
The provisions of the new health care do address the cost of health care, but numerous changes have yet to happen. Health care debt is the leading reason for personal bankruptcy in the United States. These medical credit cards are marketed to consumers as a way to get a no credit loan to pay bills. The end result is that the high interest rates compound the debt problem. Medical credit cards grew out of the belief that medical bills are a huge concern – and until medical costs are addressed, products like this will exist.
