Three federal agencies are scrutinizing medical credit cards and other payment products used to pay for health care services—including their impact on financial stability. of patients and the role of service providers in promoting them.
According to a press release, the Departments of Health and Human Services, the Treasury Department and the Consumer Financial Protection Bureau conducted a joint investigation Friday into these financial products, requesting information information about how they work, the risks they pose, and their impact on payment services. The agencies opened a 60-day public comment period to gather feedback from consumers, lenders and suppliers.
“This is an area where all three agencies are interested and want to know more and are trying to understand the extent of harm, the source of harm and what needs to be done to provide better outcomes for patients and families. them.” said Diane Thompson, senior adviser to the director at CFPB.
In a statement, HHS Secretary Xavier Becerra said the investigation builds on previous assessments related to medical bills, healthcare costs and transparency.
Credit cards and medical loans are often used for non-emergency procedures, such as dental care or plastic surgery, but recently they have been used more and more for primary care, specialty and emergency, often promoted as a payment option when patients are stressed.
Many credit cards offer a month-long grace period on interest payments, but if the patient does not pay the balance in full within that time, they will be responsible for the total late payment interest charges. as well as future interest payments.
Between 2018 and 2020, patients using these products for healthcare costs paid $1 billion in deferred interest costs, according to a CFPB report released in May. Nearly $23 billion in healthcare costs were paid during that time using medical credit cards or deferred interest loans, the report found.
HHS leaders are not available for follow-up interviews. The Treasury Department did not immediately respond to a request for additional comment.
Rebecca Novick, director of the health law unit at the Legal Aid Association advocacy group, said she welcomes greater scrutiny of payment products, especially considering the disproportionate impact. that they can have on low-income patients.
“That’s a problem for a large percentage of the population, and certainly what we see is that the people who can’t afford it are sometimes put in the worst-case scenario with medical debt,” Novick said. speak.
Agencies also want more information on how providers benefit from promoting payment products, such as a share of revenue or guaranteeing lower processing fees based on patient volume. register. It could also be a way for providers to bypass the claim process and financial assistance programs, Thompson said.
In some cases, payment products may allow providers to charge higher prices to uninsured or self-pay patients, which increases the total cost of care, according to the notice. press report.
“We don’t know nearly as much as we would like to know about incentives in this area. We really don’t know why providers make these available to patients at the provider’s office. or what the supplier understands about these products when they make them available,” she said.
Additional information could lead to more accountability and potentially shape law around medical billing, debt collection and financial assistance programs, Thompson said.
