What is a Medical Credit Card?
A medical credit card lets you pay for medical expenses. While it is a type of medical loan, it comes in the familiar format of a credit card. The credit cards do provide a much-needed service in that they can provide a quick line of credit for medical costs. They typically charge a high-interest rate and annual percentage rate.
Medical credit cards have become available the world over but remain most commonly issued in the US. That’s because in the US, the annual cost of health care per person is greater than any other country. In 2020, the per-person cost of health care in the US was $12,530 per person. This option works best if you have health insurance. The insurance covers the majority of the expenses and the medical credit card leaves you a specific account to charge to which you can charge medical care. You’ll only need to charge co-pays and items not covered by insurance on the card.
Health insurance covers much of the expenses of preventative care, but if you do not have insurance or are underinsured, you may need a medical loan to pay for services. A medical credit card lets you charge checkups, tests, physical therapy, and more. It’s also useful if you receive a diagnosis of a catastrophic illness.