Consumer Credit for Medical Care Becoming More Commonplace

As healthcare costs continues to rise, the consumer credit industry has launched into action, offering no-interest or low-interest credit arrangements to help patients finance costly procedures. According to the New York Times, these plans are very popular with people who need expensive dental or medical care, but cannot afford the entire out-of-pocket cost upfront. Patients must be screened for creditworthiness just as they would if they were applying for a credit card, but in some cases, there is no interest charged unless the patient defaults. The longer the payment term, the more likely it is for the patient to be charged interest.

In addition to addressing the needs of patients with large, one-time medical expenditures, some companies are developing products which are linked to a consumer's insurance plan, so that they can be used for any out-of-pocket costs. UnitedHealthcare, for example, has been working on a medical credit card that can be used in conjunction with a health savings account to pay for non-covered medical expenses.