Beware Medical Credit Cards

Many doctors and dentists are marketing medical credit cards to their patients. Doctors like the cards because they get paid immediately from the credit card companies rather than spending time collecting medical bills. Doctors and other health care providers are pushing the cards even in cases where the patient needs emergency care and may not be in a position to refuse the card or to intelligently make a proper financial decision.
Consumer lawyers report they are seeing a growing number of cases where patients say they did not realize they had signed up for a credit card, nor did they understand its terms and conditions. Some of these cards carry interest rates of up to 27 percent. Like other credit cards, medical credit cards often have low or zero interest for an introductory period.
In most cases, consumer protection laws like the Truth in Lending Act would only apply to the credit card companies. However, these cards could lead to claims against the doctors under some state laws.
The issue of has become enough of a problem that in California a bill has been introduced to prohibit dentists from offering financing to patients while under anesthesia.
Credit card companies marketing these cards include Citi Health Card, GE CareCredit and Chase Health Advance. Even some hospitals, physician and dental practices have begun issuing their own branded credit cards.
In many cases, patients think they are being offered a payment plan by the medical provider, not a credit card by a commercial bank