Financing Boob Jobs, Facelifts, Braces, Root Canals, LASIK, oh, and Artificial Insemination

While the presidential candidates are busy debating healthcare finance, the Capital One barbarians and their friends have stepped into the breach. You can finance your elective healthcare through Capital One. It turns out that the company best known as a credit card issuer very effectively marketed by barbarians demanding to know "What's in Your Wallet?," has an entire operation dedicated to healthcare finance. Who knew? Capital One Healthcare Finance finances elective healthcare, such as dental, cosmetic, vision, orthodontic and fertility treatments.

I haven't been able to get precise rates off the web without submitting hordes of personal information, but they offer fixed rates ranging from 1.99% APR to 25.99% and payment terms of 18 months to 7 years (depending on the treatment). The pitch is that this is a cheaper way of financing elective healthcare procedures than credit cards--low fixed rates instead of variable rates. If this is true, then Cap One is providing a real service to folks who have elective medical issues--like wanting children--but don't have the cash on hand. Interesting to see Capital One Healthcare competing, in essence with Capital One cards.

It's not clear whether this financing can be used for any physician or whether a physician has to join the Capital One network first. I imagine this sort of financing is attractive to physicians because they don't have to deal with insurer-imposed price limits, and they are assuming Capital One's credit risk, not the patient's.

I assume that this is all unsecured financing. I hate to think of the implications of a purchase money security interest in implants, braces, or an embryo. Talk about problems with proceeds.

Comments

[erb]

This link is too good not to share. Fitting for a bankruptcy oriented site. http://www.scalzi.com/whatever/003704.html

[RK]

Puts a whole new spin on repo man.

[Linden]

I've seen this kind of financing for the past several years in dentistry. The interest rates are high, TILA disclosures are lacking, and collection after default is aggressive.

[Moti Levi]

It would give "being Shylock" a whole new, modern meaning.

[aikanae]

CareCredit has been actively marketed by healthcare providers for several years now. Part of their marketing speel is why they differ from a mastercard or visa. It's pretty stupid, but I can see where if you were faced with a needed operation it would sound better than loosing your house. They offer an initial payment period with no interest (as most new cards were doing).

The primary difference is that I believe it is only good at healthcare providers. This type of buyer is a whole new desperate market, ripe for a new version of payday lender. What does that say about our 'best in the world' healthcare?
http://www.carecredit.com/faqs.html

[ashley ann blackmon]

please let me get this i need a boob job done because i dont have any prid in myself