Synchrony Financial\u2019s CareCredit Card. Contributed photo.<\/figcaption><\/figure>\nWells Fargo offers the Wells Fargo Health Advantage Card, which is similarly limited to being used for medical procedures. However, the Wells Fargo Health Advantage Card can only be used for eye surgery, hearing related costs, dental care and veterinary care. Synchrony\u2019s CareCredit can be used for a much wider array of procedures, including ones related to weight loss and cosmetic surgery, as well as a broad \u201cother\u201d category.<\/span><\/p>\nPutting medical expenses on credit cards can allow the uninsured or those needing treatment not covered under their plan to quickly pay for procedures or medicines. The cards also offer discounts and reduced APRs if certain conditions are met, which can be attractive to consumers. Hospitals appreciate that it speeds and simplifies payment.<\/span><\/p>\nHowever, the senators\u2019 letter questioned the circumstances in which consumers are making the decision.<\/span><\/p>\n\u201cThe concern here is the current structure of our health care system often requires that patients enter into medical debt in order to access services they need,\u201d the letter said. \u201cWithin that context, patients \u2014 often under duress because of concerns about their medical care \u2014 are being pushed into and then locked into medical credit cards despite the availability of alternative payment options that might be more beneficial and offer lower interest rates.\u201d<\/span><\/p>\nThe letter also pointed to documented cases of patients paying interest that totals more than the cost of the procedures they received, APRs raising as high as 26.99%, and some cards being maxed out as soon as they are approved. The letter claimed that patients using these cards are often billed at a very high \u201cchargemaster\u201d price, which medical providers often use as a starting point in negotiations with patients and insurance companies but rarely receive.<\/span><\/p>\n\u201cIf you pay 0% interest on a seriously inflated charge, it\u2019s not a good deal,\u201d the letter continued.<\/span><\/p>\nThe senators also raised concern about rising levels of subprime debt, and expressed fears that medical credit cards might be uniquely damaging to credit scores, writing: \u201cThe cards may also adversely impact consumers\u2019 credit reports because of the way they are treated by credit reporting agencies: the agencies recently agreed to remove 70% of medical debt from credit reports, but these changes will not benefit medical credit card holders.\u201d<\/span><\/p>\nThe letter concluded by asking both Synchrony Financial and Wells Fargo to respond to 16 questions ranging from specific information on the number of medical credit card users and partners to the terms of paid endorsement deals with healthcare professionals.<\/span><\/p>\nAt the time of this writing, Senator Murphy\u2019s office nor Wells Fargo have returned requests for comment.<\/span><\/p>\nA spokesperson for Synchrony said that the company will provide more information on either Jan. 26 or Jan. 27, after having engaged with the senators who originally requested the information by Jan 12.<\/p>\n<\/p><\/div>\n
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