Be Skeptical of Health-Care Credit Cards

Washington Post
August 31, 2010
Andrews, Michelle
P. E4

Thousands of dentists are offering health-care credit cards with tempting payment options, but many of the card companies and some of the practitioners who offer the cards are under scrutiny for deceptive and sometimes fraudulent practices. New York Attorney General Andrew Cuomo has initiated an investigation into the health-care lending industry after receiving hundreds of complaints, and Minnesota Attorney General Lori Swanson sued two clinics last year for signing patients up for credit cards without their consent and charging for services not yet provided. A California law that took effect in January, meanwhile, prohibits dentists from charging fees before services are performed. According to patient advocates and investors, people often are unaware that they are applying for a credit card; and more unpleasant surprises arrive when they get they card. Consumers who do not pay off the debt within the specified time frame often are slapped with interest charges exceeding 25 percent on the entire amount, and some have discovered charges for work that had not been done yet. Teaser and promotional rates are still allowed under the new credit card regulations, which also do not address the issue of charging prior to the completion of services. More people are struggling to cover medical bills as health care costs continue to rise, and the best option is the simplest: as for an extended payment plan, which many providers will offer without high interest rates.
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