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[04:17:13 AM Monday, February 04, 2008]
These Credit Cards Take Care of Your HealthHow much does your insurance premium cost you each year? Considering the fact that American healthcare services are outrageously high, it is easy to guess that you may pay fabulous sums. According to the data provided by Kaiser Family Foundation, a health policy and research firm, an average household pays about $3,300 a year. And this is medical insurance alone. Add to the insurance prescription drugs and all the healthcare related services and the overall bill may amount to as much as $7000. Carrying all these expenses has been inevitable for most people who take care of their health and the financial pressure has been growing. However, some relief is brought by credit cards today. Paying for medical expenses with a credit card turns out to be not only convenient but profitable for a patient as well. Special plastics designed for medical-related services allow you to earn cash back, reward points and get discounts on certain prescriptions and services. It means that wise use of healthcare credit cards can save you money, which you can transfer to a health saving account, or reward you points redeemable for a variety of health products like blood pressure monitors. For today here are two big credit card issuers offering such credit card products designed to help you save on medical expenses. They are Citibank and Bank of America. In fact, the principle of their cards' programs is not much different from those on business credit cards or student cards - you get rewarded for using your plastic for most frequently made purchases. Citibank's Citi Professional and Bank of America's Caremark Visa both come with low interest rates, so the ability to earn rewards at a lower cost make these products a really profitable deal. Caremark Visa is a points-based offer for those participating in its discount prescription drug programs. Its holder is eligible for 2 points for each dollar spent for pharmacy outlets. A certain amount of points is redeemable through Bank of America's catalog of rewards. Citibank issues its healthcare credit card to any type of credit consumer and offers up to 60% discount on prescriptions. With all this said, the healthcare credit cards may seem to you a rather attractive and easy deal. What is the trap, however? Our financial experts advise that these cards should by no means be used to cover each of your medical bills. Even small medical expenses regularly put on a plastic can accumulate into a credit card debt which is almost twice as fat as any other type of consumer debt. Almost 50% of bankruptcy filing is due to the unmanageable debt accumulated as a result of numerous medical expenses paid for with a credit card. According to financial advisers, you need to be a disciplined and responsible borrower who is sure of his/her ability to cover credit card bills on time each month. They also insist that you should consider making big health-related purchases with such a credit card, rather than using it for each small medical bill. For instance you are likely to get a big discount on the purchase of an inhaler or on the healing of a leg or arm fracture. So, healthcare credit cards will possibly not reduce your spending on medical bills, but they will be a smart tool to pay for unexpected expenses like an operation or high-value medical appliances. You can no doubt save a grate deal. |
