Medical Credit cards’ usage could possibly result to patients overpaying in Healthcare.
During the Senate Committee on Banking, Housing and Urban Affairs hearing Sen. Elizabeth Warren, spoke on lapse of the credit reporting agencies at Capitol Hill in Washington. A group of Democratic senators is probing the consumer finance overseer of the country to take action against medical credit cards like CareCredit, claiming that these medical credit cards can lead in patients overpaying in their medical care much more than they’re supposed to.
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Medical credit cards were used for chosen procedures like cosmetic dentistry, dermatology, vision and in veterinary clinics. Medical credit cards are helpful to patients that can’t pay medical bill promptly.
Though deemed helpful, Sen. Elizabeth Warren, D-Mass, and a group of lawmakers, alleged that medical credit cards’ late interest features are unclear and often lead to consumers compensating high interest charges after the first promotional period has ended. Warren and the other lawmakers also the medical credit cards are used instead of the discount programs that hospitals and other health organizations should apply to a patient based on their financial capabilities before making the patient take on debts.
Medical credit cards issues were stressed in a report recently by the Consumer Financial Protection Bureau. Though actions are not yet taken, in regards the medical credit card issues, consumers group is urging the bureau to deliberate writing new protocols for medical credit cards.
Warren wrote to the bureau that through an investigation, they saw that medical credit cards could be a potential threat to the finances of the patients. The Senators are encouraging the CFPB to ensure that medical credit cards are used in specific ways without affecting medical privacy rights.
The Synchrony Bank shares the same concerns and sentiments with the Senators, and is looking forward to working with the CFPB in ensuring new protocols for medical credit cards’ usage.
READ MORE: Medical credit cards may lead patients to overpay for their health care, Democrats warn
