Financing your healthcare...an "untapped market"

[cprompt]

As more cash-strapped Americans resort to paying medical bills on credit cards, experts say it's a risky trend for consumers but a huge untapped market for lenders.

By Parija B. Kavilanz, CNNMoney.com senior writer
Last Updated: July 9, 2009: 9:30 AM ET
NEW YORK (CNNMoney.com) -- As medical bills pile up, more Americans are paying their doctors with plastic.

Consumer advocates warn that this is a dangerous trend, but industry watchers see a multi-billion dollar opportunity for lenders to offer specialized "medical" credit cards.

"Out-of-pocket health care spending was already increasing in good times," said Bruce Carlson, publisher with health care market research firm Kalorama Information. "Now with high unemployment, consumers have to reach into their pockets even more to fund their health care."

Americans spend an estimated $294 billion on annual out-of-pocket medical costs annually, to cover everything from doctor's office co-payments to surgeries and prescription medications.

About 25% of that -- around $74 billion -- is already being charged to regular standard credit cards, according to Kalorama. McKinsey Consulting expects that $150 billion worth of health care expenses will go on credit cards by 2015.

http://money.cnn.com/2009/07/09/news/economy/healthcare_medical_creditcards/index.htm?cnn=yes





Speechless.......

[Horse with no Name]

1. self-delete

for factual incorrectness.:D

[redqueen]

4. .

no worries :hi:

[Horse with no Name]

5. Sorry. You are correct. I had it backwards.

Thanks!

[napi21]

2. My guess is that a lot of them are seniors who reach the

donought hole on their meds and have no other choice! I know quite a few who have to do that. Where else could they come up with the $3,500?

[dkf]

3. I've been told I'm one of the few people who still pays by check.

So why are we so shocked people pay by credit card? This is stupid.

[abumbyanyothername]

7. I use my credit card for pretty much everything ...

Heck, I used to pay my child support by credit card, until the state figured out that they were getting charged 3% (or whatever) on the transactions.

I get airline miles and use them for vacations.

[Xithras]

6. Been there, done that, have one.

Had two dental implants put in last year at a total cost of $16,000. My insurance covered $6,000, leaving me to deal with the other $10k. My dentists office plopped a CareCredit application in front of me. CareCredit is essentially a GEMB credit card that can only be used at doctors offices.

The sales pitch is slick...zero interest financing on all procedures paid for within the "grace period" (12 months in my case). After that, they apply the "deferred" interest and jack your interest rate. It's an OK system if you're having a less expensive procedure done that can be paid off over a few months, but it's a horrible way to finance big ticket purchases like surgeries. When my grace period expired, I was nailed with over $1500 in fees and interest.