What GAO Found
Multiple entities offer medical credit cards, but according to market participants with whom GAO spoke,
Medical credit cards from large banks offer a revolving line of credit with an established credit limit--akin to a conventional credit card--with some form of promotional financing (special terms and conditions, which are valid for a specified period of time). The most commonly used financing option is deferred interest, with no interest charged for a promotional period but interest charged retroactively if the balance is not paid in full before the end of the promotional period, usually 6 to 24 months. Among large banks GAO reviewed, as of
Why GAO Did This Study
Medical credit cards and related products (such as installment loans) are offered by financial institutions through participating providers to pay for services not covered by health insurance, such as dental and cosmetic procedures, or for veterinary care. Medical credit cards received increased attention after enforcement actions in 2013 against
GAO was asked to review the marketplace for medical credit cards and related products. This report describes the participants and products in this marketplace. To address these objectives, GAO conducted a literature review and reviewed websites, product terms and conditions, and other publicly available information. GAO also interviewed staff of, and collected documents from,
What GAO Recommends
GAO makes no recommendations in this report.
For more information, contact
TNS 30FurigayJane-140719-4803905 30FurigayJane
Most Popular Stories
- PBS Series Examines America's Demographic Shift
- California's Ban on Plastic Bags: What Now?
- Petri Likely Broke House Ethics Rules
- Americans Bet Big on Gambling Industry
- Exxon Gives Nod to Fracking Risks
- Morgan: 'Can't Believe' Wal-Mart Blaming Him
- Texas Sees Gains in Hispanic College Enrollment
- Wealth Gap Widens as Rich Spend More on Kids' Education
- Can You Be Fired for Using Medical Marijuana?
- Lack of Sea Ice Brings 35,000 Walruses Ashore