Convenient hospital loans may not be a good choice - NBC12 - WWBT - Richmond, VA News On Your Side

Convenient hospital loans may not be a good choice

Insurance companies are covering less and less, meaning hospitals are picking up the slack. (Source: Pixabay) Insurance companies are covering less and less, meaning hospitals are picking up the slack. (Source: Pixabay)
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Hospitals have started offering loans to patients to cover medical bills.

Man insurance companies cover less and less of costly medical procedures, which is why people have started turning to hospitals to fill that need.

About 15 to 20 percent of hospitals and medical clinics in the U.S. have teamed up with banks to offer healthcare loans.

The loans work by the hospital billing department evaluating the patient's out-of-pocket costs and presenting different payment plans, often while the patient is still undergoing treatment.

Credit checks aren't required most of the time, which make the loans convenient, but there are other things to consider.

The cost estimates are based on the hospital's list price, and that amount may be much larger that what an insurance company would negotiate. Then there are the interest rates and terms of payment that must be considered.

It comes down to making an important financial decision while ill or injured may not be the best time to be going through that paperwork.

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