Removing Cost-Related Barriers to Healthcare with a Spending Card

Getting a Healthcare Spending Card

A healthcare spending card helps remove cost-related barriers that could lead to productivity loss and absenteeism. Employees can use a debit card to pay for eligible healthcare and dependent care expenses using pretax payroll deductions.

An FSA allows employees to pay predictable eligible health care expenses with pretax dollars, lowering their taxable income and saving them money. Plus, unused funds carry over to the next year.

No Credit Checks or Fees for Financing Dental Expenses Over 12 Months

Many dental offices offer payment plans that don’t require a credit check. CareCredit is one of the most popular options. It’s available at more than 100,000 dental service providers, and you can apply in a dentist’s office or online. CareCredit offers interest-free financing for six, 12, 18, or 24 months.

Dental loans are similar to personal loans, and the terms and rates vary based on your creditworthiness. Some lenders, like OneMain Financial, may approve applicants with fair to bad credit. However, their rates tend to be higher than those of lenders that focus on prime borrowers.

An FSA is a great way to fund dental work, as it lets you save pretax money that rolls over year after year. You can use it to pay for eligible procedures, including dentures, bridges, implants, or other dental surgery. However, you must be enrolled in a high-deductible health plan to qualify.

No Credit Checks or Fees for Financing Non-Dental Expenses Over 12 Months

A wide variety of credit cards are marketed specifically for medical expenses. Some, like the CareCredit Card issued by Synchrony, offer financing for medical expenses not covered by insurance at more than 225,000 providers. Other cards, such as those issued by GE Capital and JPMorgan Chase, provide lines of credit that can be used to pay for many different types of wellness-related treatments.

All of these cards are for-profit, and as such, are in the business of making money from financing charges. Often, says the Consumer Financial Protection Bureau (CFPB), these cards are pushed to consumers by healthcare providers who are looking to avoid the hassles of dealing with insurance claims and the cost of collecting on debt.

With a healthcare spending card1 linked to their FSA or HRA, employees have access to a new source of funds1 with no credit checks and no interest fees for non-dental expenses. This helps remove cost-related barriers to care that can lead to lower productivity and absenteeism.

No Credit Checks or Fees for Financing Non-Dental Expenses Over 4 Installments

Medical credit cards can provide a safety net when you need health care services that aren’t covered by insurance or Medicare. You can usually apply for these cards at the offices of healthcare providers and veterinarians. Many have a minimum credit score requirement, but you can often find options for fair to good credit scores.

Unlike traditional credit cards, which carry interest rates and fees, medical credit cards typically have no interest for a specific introductory period. These 0% APR periods can last for the first 6-20 months of having the card, which makes them an attractive option to finance dental procedures.

Unlike flexible spending accounts (FSAs), or health savings accounts (HSAs), which let you set aside pre-tax money, medical credit cards allow you to use your available balance for eligible expenses whenever you need them. These cards can also help you bridge gaps between your FSA and HSA limits. Some healthcare credit cards like the CareCredit or Wells Fargo Health Advantage Credit Card don’t require a credit check, and others, such as Credee, have a lower credit score requirements. Having access to affordable credit can also help you pay for other health-related expenses, such as LASIK or weight loss surgery.

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