While it could be convenient to pay out of pocket medical expenses on your personal credit card, Consumer Reports states that this is a dangerous trend that could result in significantly higher interest rates for consumers. If a consumer misses a single payment or a promotional rate expires, card holders could be stuck with hefty fees on non-insurance covered items.
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According to Consumer Reports, credit card companies have started targeting doctors and other medical professionals to encourage new credit card products on patients in order to avoid the hassles of bill collection. Often consumers are confused about what medical expenses their insurance will cover and what is truly considered “out of pocket”. Often it can take months for a doctor to receive payment for all services. By offering a “0% credit card offer”, medical professionals can receive payment right away, patients can pay on credit versus cash and credit card companies can obtain a new customer.
Consumer Reports notes that consumers could charge an estimated $135 Billion of out of pocket medical costs on credit cards by 2015. While potentially convenient, medical related charges on credit cards can add up quickly and end up leading to poor financial health. Rather than carry medical credit card debt, the best practice is to speak with your doctor’s staff up-front and try to negotiate a payment plan that avoids the use of plastic credit.