According to the agency, the number of these products offered to consumers is increasing.
2023/05/08 14:25
1 minute read
The Consumer Financial Protection Bureau has released a new report on consumer out-of-pocket medical costs financing mechanisms.
The report, “Medical Credit Cards and Financing Plans,” focuses on “alternative financial products,” which are increasingly being used by financial institutions and fintech companies.
CFPB Director Rohit Chopra said in a speech before the American Association of Healthcare Administrative Management on the day the report was released: released. “However, our study shows that the patient’s condition may worsen.”
According to the report’s news release, the CFPB has announced that consumers will use special medical credit cards to pay “about $23 billion in medical bills for more than 17 million medical purchases from 2018 to 2020.” Or you are using the loan with a deferred interest period”.
The report’s findings include:
- Health finance companies sell their products directly to health care providers.
- Patients need guidance on terminology and risks.
- Patients can be bogged down in ballooning deferred interest and lawsuits.
We also identified the background to these loan products, demonstrated their lack of transparency and potential financial risks to consumers, reviewed data on deferred interest healthcare credit cards, and outlined the terms of a sample of loan products. provide.
View the full report (PDF) here.
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