The New York state attorney general has launched an investigation into credit cards for medical purposes. These high-rate credit cards are marketed to patients that need money now, often when they’re already within the doctor’s office. These cards are sold as an instant loans advance to pay back bills, instead of an actual credit card.
The operational workings of medical credit cards
A few financing corporations specialize in medical credit cards. They are used to settle medical bills, and they come with high interest rates. How much money is charged to the card determines the rebate the doctor is given by the credit card company.
The investigation into medical credit
Medical credit cards seem like an easy answer for patients in a bind. The New York Attorney General is investigating the alleged deceptive practices of these credit cards. Often patients aren’t informed of the high interest rates or payments on these cards. The kickbacks and refunds are a part of the investigation of the Attorney General. By pushing financial products in the office, some doctors may be violating their responsibilities.
The incredible costs of medical care
Though the new health care bill has a number of provisions that are intended to address the high cost of medical care, many changes have not yet taken effect. The costs associated with medical are the leading reason for personal bankruptcy in the United States. These medical credit cards are marketed to consumers as a way to get a no credit loan to pay bills. The end result is the high interest rates compound the debt problem. Until medical care is not longer so costly it sends individuals into bankruptcy, the concerns that led to these medical credit cards will still exist.
