Aug 04

The New York Attorney General has launched an investigation into several medical practices that have urged patients to sign up for health care credit cards. Health care credit cards act like regular credit cards, but allow you to pay for medical services, often those that aren’t covered by health insurance. Patients may be lured into signing up for a health care credit card since they often offer interest-free plans and up to 48-month payment plans.

Apparently, the doctors receive a financial incentive when patients sign up for the credit card, which is clearly a conflict of interest. The Attorney General is also concerned that patients have been pushed into getting the credit card without receiving the proper disclosures and even without knowing they’re getting a credit card.

Be careful about signing up for medical procedures under a payment plan. You could actually be applying for a credit card, in which case you need details about the pricing – APR, minimum finance charge, grace period, and late fee.

Source: Business Week

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Tags: Care Credit, Credit, Health Care, Health Care Credit

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