Legislators on Connecticut’s General Law Committee are considering a bill aimed at ensuring consumers understand the potential pitfalls of medical credit cards before signing up.
Hundreds of thousands of dentists, doctors and veterinarians across the country offer patients the option to apply for medical credit cards to help pay for out-of-pocket costs. CareCredit, the largest and most recognizable medical credit card brand in the country, is offered by Stamford-based Synchrony Bank.
Some health providers say the products help patients pay for necessary care that might not be covered by insurance. But consumer advocates say in some cases medical credit cards can be predatory.
One feature of medical credit cards that has critics most concerned is the use of what’s known as “deferred interest” — a promotional period of six to 24 months where patients pay no interest on their balance. Once that period ends, the interest rate for new CareCredit accounts shoots up to 32.99%. And, if consumers haven’t paid back the loan in full when the promotional period ends, they must pay interest on the full amount of the loan, not just the remaining balance.
“This is modern-day loan sharking,” Rep. Gary Turco, D-Newington, said in an interview with the Connecticut Mirror.
This session, Turco is cosponsoring a bill that would ban providers from marketing medical credit cards in their offices, as well as prohibit them from charging the cards for services that hadn’t yet been performed or that they know are covered by insurance.
Turco said the proposal is meant to build upon work the state has done in recent years to help alleviate the burden of medical debt for Connecticut families. In 2024, Gov. Ned Lamont led an effort that has canceled medical debt for over 150,000 residents to date. Legislators also passed a bill to prevent the reporting of medical debt to credit agencies.
Sue Bishop, executive vice president of corporate affairs at Synchrony, said the company trains providers on how to responsibly talk to patients about CareCredit, including checking for insurance coverage or other financial assistance options first.
Bishop said Synchrony also aims to ensure that consumers understand the product. A CareCredit representative makes a welcome call to all new cardholders to explain terms, and the bank sends regular statements that clearly state how much interest has accrued. Bishop added that the majority of CareCredit customers aren’t paying interest, showing that “a lot of people do understand” the product.
“Eighty percent of our consumers pay off on time,” Bishop testified. “Eighty percent of the people using CareCredit nationwide are paying zero interest for the medical care they want and need.”
In Connecticut, there are more than 100,000 active CareCredit accounts and 2,000 health and wellness providers that accept the card, according to Bishop.
Kathlene Gerrity, executive director of the Connecticut State Dental Association, said dental insurance is much less comprehensive than medical insurance and patients often have out-of-pocket costs, even if they have coverage. Medical credit cards play an important role in helping patients finance those costs, she said.
“These financing options are voluntary and transparent,” Gerrity stated in written testimony. “Such programs serve as a bridge between limited insurance benefits and timely treatment.”
Turco said the bill wouldn’t prohibit the use of medical credit cards in the state. It would merely ensure patients don’t get taken advantage of during what could be a vulnerable situation, he said.
“You’re in the medical, dental or veterinary office, and there’s maybe some sort of urgent need. And you have your health care provider suggesting this product,” Turco said. “I just think the consumer deserves the right to make the best financial decision.”
A 2023 report from the U.S. Consumer Financial Protection Bureau warned that providers were offering patients medical credit cards even when lower or no-cost financial assistance options existed. The agency also found that medical credit cards were “typically more expensive than other forms of payment, including conventional credit cards.”
But Bishop from Synchrony testified that the bank’s contracts with providers prohibit them from “offering CareCredit in an emergency setting when a patient is under medical duress or is otherwise impaired.”
Synchrony offers participating health care providers an array of CareCredit marketing materials free of charge, including brochures, signage, acrylic blocks and clipboards. They also provide ready-to-use digital materials for providers to easily advertise CareCredit on their websites and social media channels.
Hartford resident Tenaya Taylor was one of a small number of people with direct experience with medical credit cards who testified during last week’s hearing.
Taylor signed up for a medical credit card at the recommendation of a dentist roughly a decade ago, but tossed the card in a drawer and forgot about it after it arrived in the mail and was approved for just $500.
Years later, when Taylor went to apply for an apartment, they were told they were being rejected because of poor credit. They realized they had a default for a CareCredit product, even though they had never used the card.
Taylor, whose work includes advocating for expanded access to oral health care, said that even if CareCredit helps a majority of people, it’s still critical to understand which groups, in particular, it could be harming.
Data illustrates there are racial disparities among those who struggle to pay for care. A 2025 survey of 1,400 Connecticut residents found that, while just over half of white respondents said they delayed or avoided care due to cost, nearly three-quarters of respondents of color reported the same.
Referring to Bishop’s earlier testimony, Taylor said, “Who is the 80% that is able to pay and then who is that 20%? It’s probably disproportionately communities that are targeted by other things and face barriers,” Taylor said.
“That 20% is still important,” Taylor said.
Katy Golvala is a reporter for the Connecticut Mirror. Copyright 2026 @ CT Mirror (ctmirror.org).
