A Comprehensive Comparison
When it comes to financing healthcare expenses, two popular options are CareCredit and Lane Health. While both services aim to help individuals manage their healthcare bills, they differ significantly in terms of benefits, fees, and overall user experience. In this comparison, we'll explore the advantages of the Healthcare Spending Card1 and examine the drawbacks of CareCredit.
The Healthcare Spending Card offers several benefits that make it an attractive option for individuals seeking to manage healthcare expenses.
Some of the key advantages include:
This review highlights the potential risks associated with using CareCredit, including:
CareCredit has been criticized by many users for its business practices. One customer shared a scathing review, stating: "They don’t deserve any stars. Don’t go paperless. You need to read the small print. They have varied so-called promotions that are up to the provider, really!
Little did I know this since it’s been 18 months in the past, now it is 12 or maybe 6 months. Then they dump the complete huge interest from the start on your bill if not paid in full by the end of promotion. Customer Service no help, not their problem. Heads up for those thinking of using CareCredit. They need to change their name. No caring-ripoff."
When comparing CareCredit and Lane Health, it becomes clear that the Healthcare Spending Card offers a more flexible, cost-effective, and user-friendly solution for managing healthcare expenses. With its native HSA integration, freedom of choosing your own provider or retail outlet, lower fees, and 0% financing options3, Lane Health offers a superior choice for individuals seeking to finance their healthcare bills.
By choosing Lane Health, individuals can avoid the potential pitfalls associated with CareCredit and enjoy a more streamlined and cost-effective experience. Whether you're facing unexpected medical expenses or planning for future healthcare needs, Lane Health's is an excellent option to consider.
Common Questions
What is the main difference between CareCredit and Lane Health?
The primary difference lies in their approach to healthcare financing. Lane Health offers a flexible and cost-effective solution with its Healthcare Spending Card, while CareCredit has been criticized for its complex promotions and hidden interest charges.
Can I use Lane Health's Healthcare Spending Card anywhere?
Yes, Lane Health's card can be used anywhere that accepts VISA, providing users with the flexibility to choose their preferred healthcare providers or retailers. Conversely, CareCredit offers a closed-loop healthcare credit card. It can only be used at providers who are part of the CareCredit network.
How can I save money using the Healthcare Spending Card?
By leveraging pre-tax dollars through native HSA integration, users can save up to 25%2 on their healthcare bills. Additionally, Lane Health's lower fees and 0% financing options3 which can result in significant cost savings.
Is CareCredit a reliable option for healthcare financing?
CareCredit has received negative reviews due to its complex promotions, hidden interest charges, and poor customer service. Individuals should exercise caution when considering CareCredit as an option.
By understanding the benefits and drawbacks of each service, individuals can make informed decisions about their healthcare financing options. The Healthcare Spending Card emerges as a clear winner in this comparison, offering a more user-friendly and cost-effective solution for managing healthcare expenses.
The Healthcare Spending Card is designed to be a better way to pay for your healthcare expenses and to provide an additional source of funds (upon application and approval) to help you pay for the healthcare you deserve. It can link to your existing health savings account (HSA) or flexible spending account (FSA) to utilize available pre-tax funds to repay healthcare bills paid with the Card, minimizing the need to carry multiple cards.
Not only does the Card provide a line of credit, it also has additional benefits including multiple repayment types including 0% financing1 options. If you have a health savings account (HSA) or flexible savings account (FSA), you can link these accounts to your Healthcare Spending Card and save up to 25%3 by repaying healthcare expenses using pre-tax dollars. And finally, the Card has no annual fee1 so it can be there for you when you need it and not cost you anything when you don't.
No. Lane Health performs a soft credit check on Healthcare Spending Card applications, but there is no negative impact to your credit score if you are not approved or choose not to open an account. Similar to most lending products, Lane Health will perform a hard credit check and report the opening of a Healthcare Spending Card account for those that are approved - which may affect your credit score.
No. This Card works with or without a linked spending account (HSA or FSA). Upon approval, you are assigned a credit limit that can be used to pay for qualified healthcare expenses. If you have linked your spending account, you can use the pre-tax funds available to pay back the Card at your discretion.
When you apply for the Card, you can link your eligible health savings account (HSA) during the signup process or later in the cardmember portal.
You pay no annual fees1. We don’t charge interest1. You can take advantage of 0% financing1 options for the following qualified expenses:
- Hospital for 12 months.
- Other healthcare for 4 months.
For all other types of healthcare bills we do charge origination and periodic finance fees that total between 8-13% of the original loan amount over 12 months (see chart for how this varies by loan amount). Specifically, we charge a 5% Origination fee plus periodic finance fees (charged four times over the 12 months and get smaller as you pay back your loan).
After applying and being approved for the Healthcare Spending Card, you will have immediate access to a virtual card in the Lane Health Mobile App or cardmember portal.
If you want to request a physical card, you can do so during the application process. Once you’re received your card, you can activate it by going to card.lanehealth.com/activate or by clicking the activate button in the Lane Health portal and enteringthe last 4 digits of your card number and CCV. You can also call the Lane Health team at 1-217 HSC-CARE (472-2273) to activate the Card.
You only need to apply and activate the Card once. The card stays active as long as you make on-time minimum payments.
Yes, only qualified healthcare expenses are approved. As is currently the case with HSAs, it’s always up to you to ensure that expenses are considered qualified healthcare expenses. And as is currently the case with FSAs, expenses must be substantiated. A comprehensive list of qualified expenses can be found on the IRS website: https://www.irs.gov/forms-pubs/about-publication-502.
Yes. When the Card pulls available funds from your linked health savings account, those actions will be visible as transactions by the health savings account administrator. Lane Health will be listed as the merchant for these transactions, and you will be able to view these transactions like you would any other transaction from your account. In addition, all transactions, including payments through the linked account, will be visible on the Lane Health mobile app, portal (bewell.lanehealth.com) and periodic statements.
Yes. Loan repayments will be done in 12 equal installments, monthly. Employees can also select to repay in full or over 4 installments with no fees1.
You can link your health savings account or your bank account to make payments towards your outstanding Card balance. Additionally, you can call in to make a payment.
The Healthcare Spending Card will only approve up to your credit limit.
Yes, you can.
Yes. You can continue using your Card even if you leave your employer. Your Card will not be turned off.
Yes, you can. Every loan (defined as new charges during the statement period) will be defaulted to a 12-month repayment option (with fees) but you have the option to select Pay in Full or Pay In 4 installments (without fees1). You can select the repayment options at any time between the statement date (the date when the new charges are consolidated into a loan) and the day before the Due Date (which will be 14 days after the statement date).
