Compare Medical Credit Cards

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October 12, 2007

Credit cards issuers have already introduced so many different credit cards that it is very easy to lose count of them. There are credit cards for different types of spending habits, various rewards cards, fee free cards and so on. Among them there are cards aimed at paying for medical services.

Some doctors and hospitals together with credit card issuers market such cards to patients. This is beneficial for hospitals because they do not depend on bill collection anymore. But for their patients this can be a real disaster, for people acquire large revolving debts.

The striking example of this is a film Sicko by Michael Moor released on 22 June, 2007. In the film a man loses parts of his two fingers in an accident. Due to insufficient medical insurance and not enough money he is asked which of two fingers he would like to be re-attached. This is how exactly the current situation looks like for people with average or low incomes.

There have been many cases when hospitals did not treat patients due to insufficient insurance or lack of financing. Sometimes even both. Very often patients applied to court and these hearings did not always end well for hospitals. In order to avoid such problems medical credit cards were introduced to customers.

Medical credit cards can be used in all hospitals, casualty departments, dentist offices and chemists. You can share one card with all your family members. But usually, even if you compare credit cards for paying medical bills, you will find that they have high interest rates and hefty late payment fees.

Americans are now paying high interests on their revolving credit card debt for what has to be a necessity. We can use a metaphor that the healthcare network is made of plastic. But when you pull out a plastic to buy a new flat screen TV or a new coat you do not feel the same as when you take out a credit card to pay for cancer treatment of your relative.

Multiple recent researches have shown that medical debt can lead to housing problems. Many people find it very difficult paying a mortgage and medical debt accumulated on credit cards. It was found out that bad credit score is often the result of medical debt. Even small amounts of medical debt can be harmful for a credit history.

It is obvious, that people are vulnerable when they or a member of their family is ill. Being ill and in debt is frightening. At the moment, the American health care system puts in debt too many people. The debt does not allow getting further medical help as well as applying for other credit cards.

Credit card companies are penetrating into all spheres of our lives. Some people think they bring benefits, others do not agree with them. Well, are medical credit cards good or evil? This is a personal question and the answer depends on lifestyle and spending habits.