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August 30, 2007Care and CreditThe Times details a new trend in health care: zero interest financing for (what seems to be) mainly cosmetic procedures. Zero-interest financing, a familiar sales incentive at car dealerships and furniture stores, has found its way to another big-ticket consumer market: doctors’ and dentists’ offices. For $3,500 laser eye surgery, $6,000 ceramic tooth implants or other procedures not typically covered by insurance, millions of consumers have arranged financing through more than 100,000 doctors and dentists that offer a year or more of interest-free monthly payments. Of course, going into debt to pay for medical procedures is nothing new for many people. And this type of financing is still only a fraction of the nation’s $900 billion market for consumer revolving credit. But as the price of health care continues to rise and big lenders pursue new areas for growth, this type of medical financing has become one of the fastest-growing parts of consumer credit, led by lending giants like Capital One and Citigroup and the CareCredit unit of General Electric. To which we have to say: Bring it on. Increasing price transparency in health care, and availability of credit, will help to make health care (slowly and piecemeal) more like a functioning market. While insurance will still offer protection from catastrophic injuries and conditions, this burgeoning health care market for routine and optional treatments should help to control costs and offer consumers a broader range of affordable services. After all, if you can get a zero-interest loan to buy a car, why not for lasik surgery? Posted by Paul Howard at August 30, 2007 02:24 PM CommentsPost a comment |
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