Health bills are quite heavy for the average American to keep up with, so patients in dire need of medical solutions don’t mind taking health loans.
Huge financial players alongside hospitals orchestrate these loans, clothed in the guise of ease and genuine assistance. However, they become huge problems for patients as interest continues to pile.
Unsuspecting patients accept these loans as hospital debt relief and have no option but to pay the loans with high-interest rates. This article provides real-life instances of hospitals in America leaching on patient loans.
This is How Hospitals and Banks Collude to Cash Out On Patients
You know, health emergencies can happen anytime, and it can be very hard for the average American to handle emergencies. In fact, a new study from the Federal Reserve shows that about 40% of Americans can’t handle a $400 emergency.
Imagine what happens when a health crisis suddenly occurs, and you need about $2,500 to settle the bills.
This can be hard, right? But at the same time, nobody wants to die, and they take themselves to the hospital for treatment. However, with the huge bills springing up from an overly expensive healthcare system, many patients find it difficult to offset their bills one time.
So hospitals, in collaboration with financial institutions, have found this loophole and are providing a sort of “hospital debt relief,” which, in reality, is a way for patients to pay more money.
Hospital debt relief might sound like a lifesaver, but it is, in fact, a great way of pilling up more debt for yourself.
Although hospital debt reliefs are not new within states in the USA, a good example is hospitals in Minnesota. Allina Health in Minnesota encourages patients to get into a financial service called “consolidate your health expenses.” This service is offered by a financial institution called MedCredit Financial Services.
Another hospital in Southern California called Chino Valley Medical Center provides “promotional financing options” with CareCredit.
How Does This Collaboration Affect Patients?
You might have questions like, how does the following collaboration affect the patients?
Some people think this collaboration is needed to help those who can’t afford their hospital bills. But here is the catch:
When patients can’t afford their hospital bills, they are offered a no-credit-check loan, allowing them to borrow and pay back later. This appears like a good plan —a deep evaluation shows it is a way patients incur more bills.
These no-credit-check loans are given with very high-interest rates that surpass those you would normally get from the bank.
The graph below shows the percentage of patients currently paying off loans with the highest interest rates from a loan provider called AccessOne.
Those affected by this dubious plan by hospitals have spoken out, including a graphic designer called Milcowitz.
According to her, the hospitals have found other ways of leading patients to their early graves due to the type of loans they offer to unsuspecting people. She had taken a loan of about $3,000 for the treatment of her hysterectomy in 2017, and it had grown from the original amount to more than $3,500.
In her words, hospitals don’t even consider the patients’ health debt to income ratio before assigning such loans.
“Hospitals have found yet another way to monetize our illnesses and our need for medical help. It is immoral,” she added.