Medical credit cards save lives in the US –
but high charges and interest rates are starting to draw criticism
from regulators and medical experts.
With interest rates of up to 30 percent, the
cards are highly profitable to credit card issuers and medical
centres. Since the onset of the economic crisis there has been an
increase in the number of health care providers offering the
products, a trend Andrew Cuomo, the Attorney General of New York,
has described as “predatory”. He has launched an investigation and
issued subpoenas to 14 dental and healthcare clinics, requesting
marketing materials, terms of credit and contracts.
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In a country without welfare system, an
estimated 80 million patients are unable to pay for the dentist, or
emergency surgeries and other medical treatments.
“[The] trend that is putting money in the
pockets of medical professionals may be hurrying patients down the
road to personal bankruptcy,” said Roger Collier from medical
research company CMAJ.
There is usually no interest for an initial
period, but late payments increase interest rates to up to 30
percent, he warned.
The health care provider, however, receives a
rebate from the bank it partners with for approving their credit
card.
The lure of a monetary reward in tough
financial times has led many health care professionals to
forcefully market such cards.
