Monday, July 07, 2008

caregiving: overdose of debt

Excerpts from Consumers Report, July 2008 issue:




“This is really the medical equivalent of subprime mortgages”


Patients' out-of-pocket medical payments are projected to rise from $269 billion in 2007 to $464 billion by 2017, according to the federal Centers for Medicare and Medicaid Services.


Some of the biggest names in the consumer-credit business are mining the area of patient and medical financing because the potential for profit is so big.


CapitalOne Healthcare Finance


Chase HealthAdvance


Citi Health Card


GE Money CareCredit

Debt by the numbers chart


“The links between the credit and health-care industries hinder efforts to control health-care costs”, says Elizabeth Warren, a consumer-debt expert and Harvard law professor. "When card issuers can make the same extraordinary rates of return on medical debt as they do on iPod and sneaker purchases, they become powerful political stakeholders who profit from escalating medical costs and reduced insurance coverage," she says. "They make health-care reform that much harder to achieve."


Caregivingly Yours, J Patrick Leer 





(also available in Blogger edition, Caregiver Blog: "Caregivingly Yours")


  1. oh my gosh!! that would be awful to be approached by a credit card company to pay off healthcare costs at that exhorbitant interest!! no one would ever be able to reduce their debt or even pay that off if it was several tens of thousands of debt owed

    sad to even consider this

    on the other hand, hope you and Patti enjoyed your Fourth Patrick :)


  2.  How frightening and some people must feel they have no choice.


  3. (((((((((((((((((((((HUGSTOYOU))))))))))))))I used to think I have good Health Insurance Co pay,but,I am still paying some of my bills and I am on sick leave right now,its hard.Hope you and Patti had a good 4th.

  4. The way they charge us for out of pocket cost, you would think it was a luxery to be handicapped or need their services. (Hugs)Indigo

  5. These are scarey numbers!



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