With rising healthcare costs and larger portions of payments coming from patients’ pockets, more medical offices are offering no-interest payment plans backed by large banks and lenders, according to a story today in The New York Times.

 

Millions of consumers have already taken out the loans for procedures typically not covered by insurance, such as laser eye surgery or elective dental work. Consumer credit giants like Capital One, Citibank, and GE’s credit unit are leading the charge in backing the loans, The Times reports.

As with many consumer loans, enticing offers like “No Interest for a Year” are available only to consumers with very good credit. If the patient fails to pay off the balance in the introductory period, or if payments are missed, high interest rates and penalties apply.

 

But for some consumers that have good credit and are in a stable financial situation, the loans can give them access to procedures they would not have considered due to insurance restrictions.

One consumer highlighted in the article, Nancy Schlachter had dental work done, including a tooth implant, and put it all on credit. “The implant was very expensive, and it was not covered. It was the only way I could do it,” she told The Times.

Consumer credit experts warn, however, that patients need to be diligent in making payments because default rates and penalties on the loans can cause just as much financial hardship as high-interest, high-balance credit card debt.

 


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