More Consumers Pay Medical Bills by Credit Card

   

Posted: Jul 20, 2009

Some financial experts are concerned about the growing trend of people using consumer credit cards to pay off medical bills.

According to a recent report by CNNMoney.com, Americans charged about $74 billion in medical expenses on consumer credit cards last year, or about one-fourth of the $294 billion they spent on total out-of-pocket costs. The report cites one firm's projection that by 2015, consumers could charge as much as $150 billion in medical expenses per year.

"Out-of-pocket healthcare spending was already increasing in good times. Now, with high unemployment, consumers have to reach into their pockets even more to fund their healthcare," Bruce Carlson of Kalorama Information said in the article.

For consumers, part of the problem with this trend is the high interest they're likely to pay for medical transactions, which can be costly to begin with. The recession is a major driver of this behavior, because many workers have lost their benefits or are receiving scaled-back coverage as unemployment rates approach 10 percent.

Previous media reports have also noted that medical expenses are a leading cause of bankruptcies nationwide. This has prompted the White House and members of Congress to consider reforming bankruptcy laws with an eye toward helping those who fall into this category.