Medical credit cards may lead patients to overpay for their health care, Democrats warn
A group of Democratic senators is asking the Consumer Financial Protection Bureau to take action against medical credit cards such as CareCredit, saying the cards’ deferred interest features are confusing and often lead to consumers paying high interest rates after a promotional period has ended
NEW YORK (AP) — A group of Democratic senators is asking the nation's consumer finance watchdog to take action against medical credit cards such as CareCredit, saying use of these cards can result in patients paying much more for their medical care than they should.
Medical credit cards have historically been used for elective procedures like cosmetic dentistry, dermatology, vision and in veterinary clinics. They come in handy for patients who can't pay a medical bill all up front
But the lawmakers, led by Sen. Elizabeth Warren, D-Mass, say the cards' deferred interest features are confusing and often lead to consumers paying high interest rates after an initial promotional period has ended. They also say that sometime the cards are used in lieu of need-based programs that hospitals and other health organizations should apply to a patient’s finances before forcing them to take on debt.
The Consumer Financial Protection Bureau, which oversees consumer financial markets, previously highlighted these issues in a report issued in May. The bureau has not taken any action since the report came out, but groups of consumer advocates are pushing for the agency to consider writing new regulations for medical credit cards.
