The Connecticut legislature is considering a bill that would prohibit healthcare and veterinary care facilities from marketing medical credit cards and making disclosures to consumers before charging medical cards for products or services. The proposal, Raised Bill No. 5127, would significantly reshape how providers interact with financing products such as CareCredit and could have downstream implications for issuers, servicers, and collection operations that handle this type of debt.
The measure, introduced in the General Law Committee, is aimed at ensuring consumers understand the risks associated with medical credit cards, particularly products that feature deferred interest. Critics of these cards point to promotional periods of six to 24 months, after which interest rates can rise sharply and apply retroactively if the balance is not paid in full.
Beginning January 1, 2027, the bill would bar health care providers and veterinary care providers from:
• Advertising, marketing, or promoting medical credit cards in their offices or online using their name, brand, or logo
• Receiving financial incentives in exchange for promoting such cards
• Assisting consumers in completing or submitting applications
• Charging a medical credit card before services are rendered
• Charging a medical credit card for services known to be covered by insurance, Medicare, or HUSKY Health, unless specific disclosures are made in advance
Providers would still be permitted to disclose financial information about medical credit cards, but only in response to an unsolicited consumer request and with written disclosures outlining the issuer’s identity and the financial risks, including deferred interest features.
The bill would also require providers to offer a 30-day return and full refund window for ancillary products purchased with a medical credit card, subject to certain conditions.
Any violation would constitute an unfair or deceptive trade practice under Connecticut law, exposing providers to potential enforcement under the state’s consumer protection statute.
Supporters argue the measure builds on Connecticut’s recent efforts to address medical debt, including debt cancellation initiatives and restrictions on credit reporting. Opponents, including industry representatives, maintain that medical credit cards provide voluntary and transparent financing options that allow patients to access necessary care, noting that a majority of users pay off balances during promotional periods.
