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Warning Signs to Watch for While Using Care Credit Cards

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Warning Signs to Watch for While Using Care Credit Cards

It has become common among users to turn toward alternative financing when they need to pay for medical services that are not covered by their insurance. Care credit card is one of such options allowing individuals to meet their commitment in this regard.

The Fundamentals of Care Credit Card
Out-of-pocket payments for health care services have reached a staggering amount in the recent past and are growing about 5% every year, according to CMS. With the rise in this amount, the need for suitable ways to pay such bills is also growing.

Health care cards are being marketed by medical providers to individuals for covering medical expenses only. This can be used for covering select medical procedures that are not covered by insurance. Moreover, they are useful in covering portion of a medical bill not covered by insurance, such as deductibles.

More number of health care providers are finding it difficult to collect pending medical bills. Care credit cards are found to be a way to keep such bills from going into collections. Apart from the fact that care credit cards can only be used for covering expenses related to health care, they are also basically credit cards. This necessitates proper caution to be exercised in using the same.

What Consumers Need to Watch For
The following factors need consideration while trying to make use of care credit cards:
 Retroactive interest rates
o With late payment, the introductory interest rate tends to skyrocket. In the case of some cards, higher interest rate may be retroactively applied. Card issuers may sometimes shorten payment cycles without notification to cardholders. Those missing a payment deadline end up paying their bills late inadvertently, thus triggering an unexpected jump in interest rate
 Payment before getting services
o Upfront charging by certain health care providers is bound to happen at some point of time. In such cases, if patients end up not receiving or requiring some or all the services, or if the provider winds up business, patients will have to struggle for reversing the charges
 Deciding during a vulnerable period
o Marketing care credit cards to people who are sick and require medical attention is not the right practice. Individuals amid a medical crisis rarely assess or compare alternative financing options

The following tips have to be borne in mind while using medical credit cards:
 Get proper estimate on the cost of service and find how much your insurance policy will cover. See if any discounts are available in case you are required to bear the full amount.
 Inquire and understand if direct payment to provider is possible over time. This way, you may avail better payment option than opening a line of credit
 Upfront payment for multiple treatments must be avoided. Paying one at a time is better.
 Go through the terms and conditions before signing up for care credit card.

Numinatrans has been providing reliable medical billing solutions to medical practices since more than a decade. You may visit our website www.numinatrans.com for more details.

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