September 03, 2010
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News: Healthcare Credit Cards Under Investigation
A large number of health care professionals have decided to shift their accounts receivables to another entity that is less costly for them; however, for their patients it could be disastrous. What was a booming business for a few credit card companies, GE being at the top of the list, is now under a great deal of scrutiny because of the their predatory practices. The so called health care credit card might appear to be a good deal on the surface, but users find out very quickly that it ends up costing as much as double or triple in the long run. The healthcare credit cards which are being offered by dentists, chiropractors, and other healthcare professionals carry large interest rates and other fees. On top of this, there is suspicion that some of these healthcare professionals are actually taking advantage of their unfortunate circumstances by receiving a kickback on the number of accounts they push on their patients. Shocking considering that the main purpose of the healthcare industry is to care and protect individuals.
Many of these credit card offers lead the patient to believe they can finance their healthcare for no interests or fees. However, what many of the healthcare offices fail to inform their patients is that the interest free is for a limited time only. Furthermore, when the interest does kick in, it is typically as high as 25 to 30 percent. A great deal of the time, patients are not even aware that when they fill out the paperwork at the healthcare's office, they are applying for a credit card.
Attorney General's have received numerous complaints from individuals saying they believe they have been duped. One Attorney General has decided it times to take action and begun an investigation into the practices of healthcare offices that offer the healthcare credit card. New York's Attorney General Andrew M. Cuomo believes that at least one healthcare card issuer, GE CareCredit charges healthcare professionals a fee to become an approved provider and then rebates them back for each account they open. Also included in the investigation is Chase Health Advance and Citi Health Card. Chase representatives have no comment and Citibank said the bank is cooperating with the probe.