Debt Free News

Insurance companies offer medical credit cards

January 22, 2007

What’s next – after we have all read on this debt free site – medical service is being paid by consumer credit cards on record levels. America is paying for their medical treatment by assuming more credit card debt. So, it should not come as any huge surprise that a couple insurance providers are offering their customers a medical credit card.

Today, our debt free staff here at DebtFree24.com got wind of a new credit card debt situation just waiting to explode. We all know rising healthcare premiums and co pays are getting cumbersome – but is the answer to this mean getting into more debt? A couple insurance companies think so.

We have learned that health care providers in states like North Carolina and Texas have decided to work out credit card deals with financial institutions in order to provide medical credit cards to patients so they can pay off surmounting bills

While, these new deals may help consumers pay their medical bills, they come with an interest rate and credit card debt. SO, how can you ever get out of debt when you have to charge everything? Why does it cost so darn much to get necessary medical treatment in the US. It is quite ridiculous that we are the most powerful nation in the world, but record numbers of our citizens cannot get health care and many that do still can’t pay their deductibles and other added fees. Our debt free reporters feel it is as though we are paying more and more for the right to live in the US – when it comes down to it really.

So, these companies are stating that medical credit cards can decrease the need for bill collection for doctors and hospitals, but the fact that these cards are coming with huge rates – makes it as though the collection situation is really only getting delayed when you consider the situation properly. Who wins here? Certainly not our middle and low income debt free advocates.

Citibank has one card called Citi Health Card. It is being provided to patients through certain health care providers. The credit card provides monthly payments as low as ten bucks and contains a no interest choice for consumers who pay down their medical debt quickly by making high payments – no introductory rate though. Now, consumers who do not qualify for this plan can find they are paying an incredible twenty percent interest rate – yikes. This is not the debt free way of living at all.

We also understand that one hospital company Tenet, in a deal with United Health Group, has created a test credit program in the state of Texas that provides a line of credit to employees who want to stay on top of their increasing medical debt. With this offer, the employee co payments for medical services are paid for by automatic payroll deductions. Geeze, we though getting cafeteria food auto deducted was fun – is this? According to a Tenet rep, the company is counting on the credit program to help curb the burden its employees have when it come to their medical bills. Okay, but does this help when it comes with the attachment of payroll deduction. Yes, as long as it is pre tax withdrawal. But, it isn’t helping the people who do not work for the hospital chain.

So, the people who are in need at the tune 20% of low and middle income households, of medical debt help will have to come up with some other way to get the debt paid.

In fact, we are reporting that our average debt free (middle or low income) reader has about $3,700 more in credit card debt than families who do not carry medical debt.

Well – our debt free bottom line recommendation regarding this situation is that an additional credit card balance is certainly not the answer to eliminate credit card debt or medical debt. If you do not work at Tenet – you are out of luck then.

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