Paying medical debt with a credit card
Think twice before opening a credit card for medical bills. The temptation of credit card offers may not be worth the true cost.
Are you considering paying a medical bill with a credit card to earn points and rewards? Although these credit card offerings are attractive, banks have designed the point system to provide little value back to the consumer. Perhaps cashback is only available on a narrow set of purchases. Or introductory offers are negated by lofty annual percentage rates (APR) as high as 24%!
Unfortunately, payments to healthcare providers and doctors don’t fall under any bonus or reward category on any credit card. Therefore, the 3.8 Trillion dollars of healthcare spending in the United States is not eligible for credit card bonus rewards.
After researching the many credit card offers available from Chase, Citi, Wells Fargo, Bank of America, American Express, etc.; the consensus for paying off medical bills appears to be an offer with a great introductory period. Ideally, you should look for a credit card offering 0% APR for as long as possible. The longest introductory period we encountered was 15 months of 0% APR. This introductory period will buy time to find cash and payoff the credit card. However, beware: when the introductory period is over, and interest starts, the expense will quickly erode any benefit of delaying the medical payment in the first place.
Banks are like casinos, and casinos always win. After all, banks are not in the credit card business to lose money. In fact, banks make so much money on credit cards, they have come up with sneaky ways to advertise, like “affiliate marketing”. Basically, banks pay 3rd party bloggers and news outlets to write rosy reviews of the credit card, then the blogger makes a commission.
Consider these top-ranked google search results for the search term “cashback medical”:
- US News
- The Points Guy
Everyone is making money off of you, even the reputable news outlets. Notice, all of these sites have a disclaimer explaining the relationship with a “Partner” who gets paid when you click on the links and signup for a new credit card.
In reality, the optimal solution for unpaid medical bills is negotiating with the medical provider. It’s easy, and Cashback Medical will help.
1) When the medical bill arrives by mail, find the 1-800 number to contact a Patient Financial Representative. 2) The Patient Financial Representative will ask for your Patient Account ID to verify and lookup your account information. 3) Once you have verified your patient account, explain to the Patient Financial Representative that Cashback Medical directed you to call, then ask for your 25% “Lump Sum” discount.
Cashback Medical helps to negotiate lower medical bills for patients and consumers. Check out our markets.