Medical Credit Cards ‘Exploit Loopholes’ in Healthcare Debt Protection, Report Finds

Medical Credit Cards ‘Exploit Loopholes’ in Healthcare Debt Protection, Report Finds

Medical credit cards, presented as a remedy for medical expenses, often lure patients with promises of interest-free or deferred rates for a few months. Sounds great, right? But hold on tight. If payments are missed or the balance isn’t cleared in time, these deferred rates can become costly traps, leaving your patients paying higher interest than a regular credit card. Astonishingly, patients in the U.S. faced a staggering $1 billion in deferred interest between 2018 and 2020. Even more surprising, hospitals and doctors’ offices promote these credit cards. CareCredit, a popular medical credit card, boasts partnerships with 250,000 providers. However, these cards often replace more consumer-friendly payment plans, making patients worse off. These medical credit cards can escalate debt and lead to bankruptcy, exploiting legal gaps and sidestepping vital consumer protections. Caring for your patients doesn’t just stop at their health.

Medical Credit Cards ‘Exploit Loopholes’ in Healthcare Debt Protection, Report Finds (Halleman, Healthcare Dive, 9/8).