Issue link: https://viewer.e-digitaledition.com/i/1361647
The Use of Medical Credit Cards BY HILLARY EAMES PR ACTICES MAY BENEFIT FROM ACCEPTING MEDICAL CREDIT CARDS, BUT PATIENTS WHO USE THEM CAN E XPERIENCE DR AWBACKS. MEDICAL CREDIT CARDS will often pay the patient's bill up front, assuming a ll of the risk, which ca n help medica l facilities spend less time on billing and collecting. Patients may use such cards, for instance, when their insurance covers an initial medical or dental exam but not the recommended treatments. Patients who use these cards make monthly payments, and if the medical bill is paid within a promotional, misleadingly named "0% inter - est" period, they pay no interest. This option can benefit those who require care but cannot afford it, while still allowing facilities to receive payment at the time of service. One medica l credit card business stated their service helps practices receive payment in as little as two business days. However, these cards are not 0% interest, as some credit card offers are. Instead, interest begins accruing the day the card is used for the purchase. If the patient does not pay the bill within the 0% interest promotional period, he or she must pay the interest that has accrued retroactively since the purchase date. Severa l companies set these interest rates ver y high, with one commonly used medica l credit card company charging a 26.99% rate. If a patient makes only the minimum payment during the interest-free time frame, he or she may end up paying more in interest than the a mount of the orig ina l bi l l. W hi le medica l credit cards have the potentia l to benefit the facility, for some patients, they merely defer the financia l burden — and may ma ke it worse. n 059990060_Finance1_Credit.indd 1 3/3/20 7:29 AM Rao Wealth Partners is an independent firm with securities offered through Summit Brokerage Services, Inc., member FINRA and SIPC. Advisory services are offered through Summit Financial Group, Inc., a registered investment advisor. Summit is an independent broker-dealer with client assets held at First Clearing, LLC (a wholly owned Wells Fargo subsidiary). Summit and its affiliates are under separate ownership from any other named entity. You can name every bone in the body, but you can't name a single investment in your retirement account. It's time for a change. (212) 257-5794 www.raowp.com Individual Stock Selection | Corporate Retirement Accounts | Educational Savings Plans RAOWP_5H_058480082N_REV.indd 1 2/27/18 12:46 PM M D N E W S . C O M /// M D N E W S L O N G I S L A N D ■ 2 0 21 2 1