Think twice about paying hospital debt with medical credit card or health care provider loan

millions of families If you have some form of medical debt and are having trouble paying your bills, it can be daunting and debilitating. But before you sign up for a medical credit card or loan from a provider that promises to ease your burden, Consumer Reports warns that you could be doing more harm than good.

“These options come with high interest rates, hefty payment penalties, and can damage your credit,” said Lisa Gill, an investigative reporter at Consumer Reports.

CareCredit is the largest medical credit card company and a subsidiary of Synchrony Financial. A Synchrony spokesperson said:

“CareCredit’s convenient and transparent financing options make health and wellness care more affordable and can be used to pay for a variety of health and wellness items.”

Direct link to resolve medical debt: DollarFor.org: Income-based discounts or bill waivers | Credit bureaus offer leniency for medical debt | How to dispute a denied insurance claim

However, according to Consumer Financial Protection Bureau According to the (CFPB), the average medical credit card includes a significant amount of insurance premiums. Interest rate 27% — much higher than the typical 16% for general purpose credit cards.

This is the main reason the CFPB stated, “Our research shows that in many cases patients’ symptoms worsen when they use these products.”

Consumer Reports says that instead of signing up for a medical credit card or loan, you should ask your health care provider if they offer interest-free or low-interest payment plans.

If that doesn’t work, Consumer Reports says you should consider other options. If you have good credit, you may want to consider: personal loan Interest rates from banks or credit unions start at about 10%.

This is important: According to Consumer Reports Never provide your credit card When receiving treatment in the emergency room. If you have insurance, ask your insurance company to send you a bill. If you don’t have insurance, request that your claim be mailed to you so you can see how it will be paid and negotiate in a calm environment.

If you’re faced with a hospital bill you can’t pay, be sure to ask if there are any charity programs you can apply for. Information on how to apply to a specific hospital can be found at: DollarFor.org.

If your insurance company denies coverage for elective or non-cosmetic procedures, you should consider the following: appeal.

Open enrollment in affordable health care

If you are uninsured, the City of Jacksonville “Cover Jax.” The initiative wants to make sure you don’t miss out on the chance to get affordable health insurance. According to the city, 120,000 people in Duval County do not have health insurance.

News4JAX is partnering with the City of Florida to promote open enrollment underway to help you choose from a variety of private health plans through the Florida Health Insurance Marketplace. healthcare.gov.

If you need help getting around, the city can help. Call 866-295-5955 to schedule an appointment for free one-on-one support. The open enrollment period ends on January 15, 2024.