Comments on: Are health care credit cards a good idea for me?

Question: Are health care credit cards a good idea for me?

gc — Wed, 05 Sep 2007 12:35:26 -0800

Specialty credit card for healthcare: what say you, hivemind?

So, I've got until January before my health care package at work kicks in. Until then, I'm on my own. I have a steady job, but I'm paid hourly, so if I get sick, I lose money. I'd like to be able to see a doctor, but I'm afraid I couldn't afford it. My brother mentioned that one of his buddies has a health care credit card, with no interest, just for paying for health care-related fees. My Google-fu is turning up very specific cards (vision, dental, child care), but nothing that seems to fit the general health care umbrella.

Two questions, then: What are your experiences with this kind of thing? (Question 1a: Are there any cards that are better than others?) And, is this a good idea for a temporary solution, or should I use the "don't get sick" health care plan?

By: mr_roboto

mr_roboto — Wed, 05 Sep 2007 12:47:05 -0800

My wife and I have used CareCredit and have been happy with it. Note that you need to be scrupulous about paying on time to avoid interest and fees, and that the "no interest" period is only for a limited time. That said, combined with a Health Savings Account, this card can be a great way to spread out payments over time and get the tax benefits of an HSA. You can get the treatment now and pay for it using your tax-deferred health savings over the next year or so. Since your payments are predictable, you don't have to worry about leaving any money left over in the HSA.

By: mr_roboto

mr_roboto — Wed, 05 Sep 2007 12:48:58 -0800

"And, is this a good idea for a temporary solution, or should I use the 'don't get sick' health care plan?"

You should have at least catastrophic health coverage, just in case something bad happens.

By: Salvatorparadise

Salvatorparadise — Wed, 05 Sep 2007 12:55:08 -0800

yes, care credit was good until i was late one payment

then no interest was gone gone gone

my fault

but be aware!

By: cooker girl

cooker girl — Wed, 05 Sep 2007 12:59:51 -0800

Our HSA gave us a sort of debit card to use for health-related purchases (prescriptions, doctor visits, etc.) but it's not really a credit card. We put money into the HSA so we're just taking out our own money to pay for the medical stuff.

HSAs are fine for people who have generally pretty good health. I don't, and our policy is very, very limited as to what it'll cover. I have asthma, but the rider attached to my policy doesn't allow any respiratory claims at all, except for life-threatening ones. So my meds aren't covered (we buy them from Canadian pharmacies), my pulmonology visits aren't covered, my allergy visits aren't covered; you get the gist.

Seconding catastrophic health coverage. Worth the money, just in case.

By: Arch1

Arch1 — Wed, 05 Sep 2007 13:54:26 -0800

Mr_Roboto, it's good to leave money in your HSA... it's not a use-it-or-lose-it account; you keep monies to and through retirement. The only thing to watch out for is for fees for account maintenance or particular transactions, and that's the difference between good and unscrupulous HSA administrators.

And gc, just so you don't get into a tax bind: if you open an HSA now (which will require getting a high deductible health plan), you can contribute the maximum amount for 2008 ($2,900 single/$5,800 family) with a federal tax break, as well as a state break for most states. The only catch is that to make the max contrib, rather than a prorated amount per the full months of HDHP coverage, you'd have to maintain some kind of HDHP coverage for the next year after you begin. The IRS is calling his a "testing period" to keep dabblers from opening an HSA, chucking the money in, and then returning to traditional coverage.

Finally, for those of you in or considering an HSA, a helpful tidbit to know is that if you don't have money in your HSA for an expense that occurs after you establish your account, you can *reimburse yourself* with the tax-free dollars after the fact. Just keep ALL receipts.

As to your health care, gc, whether you end up using a "healthcare" credit card or no, I'd suggest you closely examine the expenses (look for fees, etx.) of any card or coverage and the depth of coverage for anything considered a "bargain". There are very few bargains in healthcare, and those that exist have strings that you must be aware of in order to benefit properly.

By: Arch1

Arch1 — Wed, 05 Sep 2007 13:58:47 -0800

And seconding Mr_Roboto and cooker girl but with more volume, you MUST get catastrophic coverage. You can shop online and get a 10k deductible for next to nothin', but make sure you have that catastrophic coverage.

By: mr_roboto

mr_roboto — Wed, 05 Sep 2007 14:42:57 -0800

Arch1 writes "Mr_Roboto, it's good to leave money in your HSA... it's not a use-it-or-lose-it account; you keep monies to and through retirement."

Yeah, you're right. I was thinking of a Flexible Spending Account, which is all that my employer offers.

By: cooker girl

cooker girl — Wed, 05 Sep 2007 15:50:19 -0800

What I meant to say was that the health insurance that goes along with our HSA sucks. The HSA itself has nothing to do with medical coverage, it's just the money you put into the account. We have private health insurance and it's the best we could get (75% of my family is very healthy. I'm the loser.) but it does suck.

Sorry for mixing that up.

By: electroboy

electroboy — Thu, 06 Sep 2007 07:35:47 -0800

You can only get an HSA if you have high deductible health insurance.