As if we didn’t have enough to worry about as far as credit card debt goes – what with everyone from Costco to Best Buy to Home Depot and every gas station inbetween tripping over themselves at the chance to sign you up for a new store credit card – now the health care industry is vying for the chance to have your credit turn its head and cough, which can push getting out of debt a little further off.
Just sign on the RX
Apparently, a number of medical practices in New York are urging their patients to apply for health care credit cards, so much in fact that the New York Attorney General has started an investigation into the practices. Health care credit cards act just like a regular credit card, but what makes them unique is they allow you to pay for medical services, many of which are not covered by your health insurance.
Patients who do sign up for the card are often offered interest-free plans as well as up to 48-month payment plans. It seems the doctors offering them are getting a bonus as well in the form of financial incentives for every patient that signs up.
Great, so now I have to hear my doctor give me credit card sales pitch before he fills out my prescription? “We’ve got the results of your blood work, but before we get to that, how’d you like to hear about the new interest rates we’re offering?”
Getting a lot more than you need; now THAT’S health care
The Attorney General isn’t too thrilled with the idea of doctors pitching credit cards either, not only because it presents a clear case of conflict of interest, but also because they believe many patients are being goaded into applying for these cards without being given any disclosures or even knowing they’re signing up for a credit card, possibly until they start receiving past-due notices and find they need help fixing credit.
Imagine needing an important medical procedure done and signing up for a payment plan only to find out you’ve just applied for a credit card – without knowing any of the details like finance charges, APR, or even what the late fees will be. Having a new card open in your name and not knowing a thing about it would sure make finding debt relief harder when you receive a bill for the operation and find all kinds of interest fees tacked onto it as well.Watch what you’re signing up for before it ends up costing you more than an arm and a leg. While these health card cards may hold some benefit in helping pay for anything your insurance won’t cover, they certainly aren’t worth the price for the common cold.
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