As U.S. health care costs continue reaching enormous levels, many Americans have turned to medical credit cards as a way to finance their medical bills, YahooFinance.com reported. A new report from the Consumer Financial Protection Bureau (CFPB), however, is warning about the high fees and costs that come with those cards. “The growing promotion and use of medical cards and installment loans can increase the financial burden on patients who may pay more than they otherwise would pay and may compromise medical outcomes,” the report stated. “When people are unable to pay their medical bills, research shows this can deter them from seeking needed health care in the future. The use of medical cards and installment loans, and their promotion by medical providers, has ripple effects on the broader cost of health care, consumer well-being, and the economy.” An estimated 41% of Americans are grappling with medical debt of some kind. Medical credit cards typically offer deferred interest payment periods for many of these charges. Between 2018 and 2020, however, people paid $1 billion in these payments for charges, according to the CFPB findings, on top of $23 billion in overall expenses. The total fees vary by credit score as well. For example, people with credit scores below 619 incurred interest for roughly 34% of their health care purchases, with the CFPB report noting that those with lower credit scores may be more likely to incur interest since they’re also more likely to have shorter periods before being charged deferred interest.
