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 within the office and need cash now. These cards, which offer an instant cash advance to pay back medical bills, are often marketed with allegedly deceptive practices.
The workings of medical credit cards
Medical credit cards are a product offered by a few financing corporations. The card is intended to settle medical bills, but uses a very high rate of interest for the financing. The medical provider is typically 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.
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. 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.
The very high cost of medical care
Numerous of the cost-reduction actions within the new health care have not yet taken effect. The leading cause of bankruptcy in the United States is medical cost. These medical credit cards are marketed to consumers as a way to get a no credit loan to pay 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.
