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Why there's no medical transaction promotion?

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w20031424
Frequent Contributor

Why there's no medical transaction promotion?

We have drugstore/grocery store/ airline/ gas station/ home improvemetn store category cashback promotion..  But why there's never promotion for medical expense?  Since most times we visit doctor, there's co-pay. 

 

What's the rationale behind this? Thank you.

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Message 1 of 13
12 REPLIES 12
Leadberry
Established Contributor

Re: Why there's no medical transaction promotion?


@w20031424 wrote:

We have drugstore/grocery store/ airline/ gas station/ home improvemetn store category cashback promotion..  But why there's never promotion for medical expense?  Since most times we visit doctor, there's co-pay. 

 

What's the rationale behind this? Thank you.


Isn't it obvious?  Unless you're in poor health or you have a chronic medical condition that requires constant attention, that's a pretty useless category.  I don't know about you, but I see a doctor maybe once a year.  Barring anything bad happening, I spend more on gas in a week than I do on yearly medical expenses.

 

Plus, that's just weird and probably not very marketable.

   
FICO Scores 800+
Message 2 of 13
bribro
Valued Contributor

Re: Why there's no medical transaction promotion?

Because the demand for medical services is relatively inelastic. If you're sick or injured, you're going to go to the doctor regardless of the promotional categories on your Freedom card.

 

Although... with some of the people on this board I wouldn't be surprised if they put off starting chemo for treatment on their stage 4 cancer in order to take advantage of a 5% bonus category later in the year.

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Message 3 of 13
Themanwhocan
Senior Contributor

Re: Why there's no medical transaction promotion?

And saving on medical expenses is usually done in other ways, such as using a Flexible Spending Account, or looking for a better medical insurance plan, or a supplimental plan, etc.





TU-8: 804 EX-8: 805 EQ-8: 788 EX-98: 767 EQ-04: 752    
TU-9 Bankcard: 837 EQ-9: 823 EX-9 Bankcard: 837
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Message 4 of 13
Themanwhocan
Senior Contributor

Re: Why there's no medical transaction promotion?


@bribro wrote:

Because the demand for medical services is relatively inelastic. If you're sick or injured, you're going to go to the doctor regardless of the promotional categories on your Freedom card.

 

Although... with some of the people on this board I wouldn't be surprised if they put off starting chemo for treatment on their stage 4 cancer in order to take advantage of a 5% bonus category later in the year.


I get 2% back on medical expenses with my priceline.com card. Thanks William Shattner!!!





TU-8: 804 EX-8: 805 EQ-8: 788 EX-98: 767 EQ-04: 752    
TU-9 Bankcard: 837 EQ-9: 823 EX-9 Bankcard: 837
Total $443,800
Message 5 of 13
enharu
Super Contributor

Re: Why there's no medical transaction promotion?

Because there's no need to discount such services. If you need it you are going to pay for it regardless.
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Message 6 of 13
noober0x
Established Member

Re: Why there's no medical transaction promotion?

Now offering the Amex Super-Green card:  5% cash back on your medical marijuana purchases!

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Message 7 of 13
CreditScholar
Valued Contributor

Re: Why there's no medical transaction promotion?


@bribro wrote:

Because the demand for medical services is relatively inelastic. If you're sick or injured, you're going to go to the doctor regardless of the promotional categories on your Freedom card.

 

Although... with some of the people on this board I wouldn't be surprised if they put off starting chemo for treatment on their stage 4 cancer in order to take advantage of a 5% bonus category later in the year.


This is exactly it - because they don't have to.

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Message 8 of 13
w20031424
Frequent Contributor

Re: Why there's no medical transaction promotion?


@bribro wrote:

Because the demand for medical services is relatively inelastic. If you're sick or injured, you're going to go to the doctor regardless of the promotional categories on your Freedom card.

 

Although... with some of the people on this board I wouldn't be surprised if they put off starting chemo for treatment on their stage 4 cancer in order to take advantage of a 5% bonus category later in the year.


I mean a "fixed" bonus, not a promotional one. Like BCP gives you 6 points per dollar spent on grocery store.

 

Do people really shop more in grocery store because of their BCP?  Not really, but they use their BCP more. People's spending pattern on grocery store doesn't change merely because of what CC they got, and the same applies to medical expense.

 

If some CC gives 2% or 2.2% cashback on medical expense, maybe a lot of people will try to get one? I'm still not sure about that. 

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Message 9 of 13
enharu
Super Contributor

Re: Why there's no medical transaction promotion?

The problem is, no one will want to get a medical credit card, until they have an emergency.

People nowadays are either:
1. Rich enough to pay it off on their own, so the 2-5% discount doesn't really matter. Besides hospitals are already giving discounts for paying in full or in cash equivalents.

2. Have insurance to take care of most of the bill. The 2500-7500 bucks deductible is not a lot of rewards.

3. Can't afford to pay for medical bills and likely to not qualify for a credit card anyways.

This is a niche product which is useless for most people.
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Message 10 of 13
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