NY AG investigating health care credit cards

Attorney General of New York, Andre Cuomo, initiated an investigation into health care credit cards after receiving a substantial number of complaints from consumers who were convinced by doctors and dentists to sign up for them.

The investigation will examine the financial incentives providers received from promoting the cards. Subpoenas have already been issued to 10 providers, while medical associations that endorse the card, including the American Dental Association and American Society of Plastic Surgeons, are being questioned as to the basis for their support. Cuomo also issued a subpoena to evaluate the operating structure of the three health care programs including: Chase Health Advance, Visa Health Benefits and Citibank Health Care.

According to Cuomo, providers have been inducing cardholders to finance procedures including dental work, veterinary services and cosmetic surgery not covered by insurance. In one example, CareCredit charged providers a fee to offer the card and gave rebates for part of the fee based on the amount of business providers get consumers to charge.

Other health care providers subpoenaed include: Allcare Dental Management Inc. of Buffalo; American Laser Centers of Farmington Hills, Mich.; Aspen Dental Management Inc. of East Syracuse; East Syracuse Family Dental Arts; Laser Cosmetica of New York City; Lifestyle Lift of Troy, Mich.; Northern Lights Chiropractic of Watertown; S & Y Diamond Dental P.C. of Brooklyn; Sunshine Dental of Watertown, and Toothsavers of New York City.

For questions or concerns regarding government investigations, please contact Adrienne Dresevic, Esq. or Carey Kalmowitz, Esq. at (212) 734-0128 or (248) 996-8510 or visit the HLP website.