Sally Herigstad is a certified public accountant and the author of "Help! I Can't Pay My Bills: Surviving a Financial Crisis" (St. Martin's Press, 2006).
Dear To Her Credit,
I need to have an MRI done and was told that I should apply
for the CareCredit Card to pay for this. I don't have any insurance, and I only
have a part-time job. I am single. Is there a person I can talk to about this or even about
consolidating my other credit card bills? -- Suzanne
Dear Suzanne,
The CareCredit card is one of several credit cards designed to
help people pay for health care expenses. Health care providers sometimes encourage
people to use health care credit cards so the providers don't need to worry
about collecting the money. Using that type of card may not always be in your
best interest as the patient, however.
For one thing, you can probably make interest-free payments
directly to the hospital or imaging center for your MRI. "The provider
will take payments," says Beverly Gossage, founder of HSA Benefits Consulting.
"I don't know a hospital that charges interest." Gossage is skeptical
about getting another credit card just for health care expenses. "I think
that's really rather foolish when the provider will allow you to make payments,"
she says.
It's often difficult to make the best financial decisions when
your doctor says you need a medical procedure. Gossage worries that people get
a sales pitch in a doctor's office or a hospital, and don't know exactly what
they're signing up for. It's easy for them to feel pressured by medical
providers. "If the person at the front desk says, 'Our financial
department is going to expect to have this payment upfront, or you can get
this card,' what are you going to do?" she says.
Health care cards are just one choice in controlling medical costs (See: 15 tips for paying high medical bills.) Before you sign up for a health care card, take these steps:
1. Find out what the MRI will cost and ask if you can get a
discount, even though you don't have insurance. You probably won't get the same
discount they give the insurance companies, but they can give a discount.
Some companies and nonprofit organizations offer to help you
negotiate a discount, but Gossage says you can do it yourself. "People
seem to manage talking to their cell phone provider all the time," she
says. They can do the same with their medical bills. "There are a lot of
people who get that bill and don't know they can say, 'I'd like to talk about
my bill.'"
2. Ask if they will accept payments. If they won't, you can
try other MRI providers in your area.
3. If you decide you need a health care card to get the MRI,
choose the card carefully. Don't take the first ad you see for any credit card;
let them compete for your business. See your options on this health credit card comparison chart.
Health care cards work a little different from regular
credit cards. Some of them have high annual fees or monthly maintenance
expenses. They may advertise low- or no-interest credit, but that may only be
true if you pay the balance within a certain period of time or if you get in on
a certain promotion. It's up to you to read the contract and understand exactly
what you are agreeing to before you sign.
If you use a health care card to pay for the MRI, be
vigilant about making every payment on time. Some cards charge little or no
interest for up to 18 months if you make every payment on time, but if you miss
one payment, they charge higher interest retroactively to the very beginning.
That could be a rude shock!
Sally Herigstad answers questions about credit every week for CreditCards.com. Herigstad is a certified public accountant, author and speaker. She also writes regularly for MSN Money, Interest.com, Bankrate.com and RedPlum.com, and has been a guest on Martha Stewart radio and other programs. You can read more about personal finance and download free budgeting worksheets at her website: www.sallyherigstad.com
To Her Credit answers a question about a debt or credit issue from a CreditCards.com reader each week.
Send your question to Sally.
Published: October 23, 2009
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