Best 0 Percent Balance Transfer Cards

Your Guide to Health Care Credit Cards

Health care expenses are skyrocketing. The US government predicts that out-of-pocket spending will reach over $3,300 a year per household in 2014, up from $2,500 in 2009. And that’s if you’re lucky enough to have health insurance. In 2008, two in three Americans under 65 had trouble paying their medical bills, were uninsured or uninsured, or went without needed medical care because of cost concerns at some point in 2007. And out-of-pocket expenditures in 2009 were more than $284 billion—yes, billion. Hardly pocket change.

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Medical expenses represent a significant burden on even insured Americans, as the cost of just an ambulance ride tops $1,000. For those struggling to pay, many health care practitioners provide an option: medical credit cards. However, these lines of credit often benefit the practitioner far more than the consumer.

What is a medical credit card?

Medical credit cards, or health care credit cards, were originally used to cover elective surgeries like liposuction and are similar to credit cards. You borrow money for the treatment, and pay back the money over time. Working with the patients, care providers establish a schedule of re-payment, usually over 6 to 24 months. As with a normal credit card, you must be approved, and a lower credit score results in much higher interest rates.

Unlike a standard credit card, however, you can only use a health care card for related expenses such as prescriptions, surgeries and insurance deductibles. Similar to a 0 percent balance transfer card , as long as you make your minimum payments and stay on schedule, you aren’t charged any interest. If you and your provider decide before the card is issued that you’ll need more than 24 months to get rid of the debt, you will likely incur interest at a rate somewhere between 12 percent and 26 percent.

Among the most common medical credit cards are GE Money’s CareCredit and Citi’s Citi Health Card; the cards are accepted by a variety of practitioners, from primary care physicians to optometrists to even veterinarians. Most health care providers will accept health care credit cards, but may only use certain banks. Be sure to read the fine print: your doctor may not accept your card, the card may not cover your needed procedure, and the no-interest plans may also require a minimum charge.

What’s in it for your doctor?