A zero-interest credit card you can use for medical expenses —sounds great, right? But think hard before signing on to such a plan. A Consumer reports investigation found that interest rates on the cards can jump as high as 27.99 percent if the debt isn’t paid off in the promotional period or if a payment is missed. 

Lenders are promoting the credit cards and financing plans to doctors, saying they will speed payment. And they tell patients that the plans are a convenient way to pay medical expenses, especially for procedures not covered by insurance. Some hospitals now even offer their own co branded credit cards. As a result, consumers now put about $45 billion worth of out-of-pocket medical costs on credit cards, a figure that could more than triple by 2015. 

But with consumers already sagging under record debt loads and medical expenses projected to continue to rise, we recommend staying away from medical credit-card debt if possible. Instead, keep your out-of-pocket medical costs down by following these steps:

Negotiate. Speak to the manager of patient accounts to find out your payment options. If you can pay at the time of service, providers might cut your bill by more than 50 percent. If you can’t pay up front, they’ll often be willing to spread the bill over more manageable monthly payments. Get any agreements in writing.

Get help. You might qualify for free or discounted care, but patients often aren’t told about those options. So ask for a copy of the financial-assistance guidelines. 

Double-check. Ask for an itemized bill and review it for accuracy. Also check that you haven’t been asked to pay for something your insurance already covers. 

Use credit carefully. If you must use credit, go for a zero-interest offer only if you’re certain that you can pay on time.  Otherwise, look for the best general purpose credit-card deal or use one of your existing cards, then transfer the balance to a new card with a lower rate and a low transfer fee.

Source: Consumer Reports on Health News Letter October 2008. or visit: www.consumerreportsonhealth.org