Medical Credit Cards - The Solution to Health Care Bills?
This story in Crain’s Cleveland Business about Medical Mutual of Ohio offering a medical credit card to assist its insured in paying their out of pocket medical expenses is part of a larger trend of the medical industry assisting consumers in paying for increasingly expensive treatments by offering payment assistance through credit cards.
But when a doctor or hospital offers you the means to pay for your medical treatment through taking on credit card debt, should you do it?
This article from an ABC affiliate answers with a pretty decisive no. Putting your medical care on a credit card diminishes the ability of the patient to negotiate lower payments and a longer payment schedule. And according to the ABC affiliate article linked below, medical debt looks much better on your credit report than credit card debt. They even recommend turning down a medical credit card with 0% financing!
Medical debt is an increasing problem in the United States. It is estimated that half of bankruptcy filings are the result of debt taken on for health care, and many of those have health insurance when they first got sick, according to this 2005 US News & World Report article. It’s a bad situation for both the debtor and the medical provider, but it’s not clear that medical credit cards are the solution to this crisis.
If you need more information on how to negotiate your medical bills to save thousands, learn what leverage you have against medical providers, and how to find a professional to negotiate your medical debt, click here.
