What Is Med-Pay & How Does It Work?
Med-Pay, also known as medical coverage, is a type of car insurance that does not only cover injuries of a driver in a car accident but also the passengers who were involved in the accident as well. The shocking factor about med-pay is that most automobile owners do not even know that they possess this type of insurance. It can provide a plethora of benefits that can keep you and your wallet protected.
What is Med-Pay?
The main concept of Med-Pay is to protect anyone associated with the car accident. This not only protects the driver but also others who were involved in the crash. The unique quality about Med-Pay is that medical expenses are covered no matter who is at fault. Every type of med pay coverage is different. For drivers who have not purchased the coverage, they are given an option of obtaining primary or secondary coverage.
The way in which primary and secondary coverage differ is in cost.
Primary coverage runs a little more costly but does provide the driver with an extensive amount of insurance. The personal injury lawyer will collect the medical bills that you have accumulated after your accident, bring forth those bills to your auto insurance and the company will compensate for that coverage amount.
The secondary option for Med Pay is not as abundant when it comes to coverage. The secondary coverage is inexpensive but is only applicable if you possess health insurance. The benefit of secondary coverage is that your deductibles, co-pays and the segment of the medical cost that your insurance company does not pay for will be covered as well.
To clarify any misconceptions, Med-Pay is not unlimited. The largest amount one can receive with Med-Pay is $25,000 dollars.
Auto accidents can leave a person physically, emotionally and financially drained. From the emergency room visit to the recovery, car accidents can leave you with a hefty medical bill. Med-pay covers all of your necessary medical payments from when the car crash took place all the way through the treatment process.
8 medical expenses that are covered by Med-pay:
- Ambulance fees
- Doctor and hospital visits
- Nursing care
- Dentist visits and operations due to the accident
- Injuries you had experienced as a pedestrian or while on a bicycle
- Funeral expenses
The Benefits of Having Med-Pay
- Med-Pay will cover your x-rays and medical equipment if needed after a car accident: Some insurance companies do not cover the entire cost of your medical bills or treatment, such as acupuncture, that follows after the car accident. With Med-Pay all of your medical costs are covered.
- Your insurance rates will not go up with Med-Pay: The number one question when inquiring with Med-Pay is “Will my rates go up with Med-Pay?” Your insurance rates should not increase, but there are special circumstances in which it does. For example, if you are proven to be at fault of the accident whether you file a Med-Pay claim or not your rates may go higher.
- A lawyer or doctor can also file a Med-Pay claim for you as well: If you would like a medical professional or a legal representative to file a Med-Pay claim for you, it’s best to inquire if there wiasanall be a fee or not by doing so. Some doctors do file the claim for you with your consent in order to contact your insurance company about your medical payments.
Med-Pay and Health Insurance
Your health insurance will influence your med-pay coverage. If your health insurance provides outstanding coverage for the physical damages you may not need much from your medical coverage.
If your health insurance does not include coverage for specific kinds of injuries, it is strongly suggested that you purchase Med-Pay. You should also consider buying higher Med-Pay coverage if you do not obtain personal health insurance coverage.
Reimbursement with Med-Pay
Med pay usually does not bring forth extra compensation because the insurance company will be paying out the benefits and will petition for the reimbursement of the amounts paid. There are three measures you can take to make sure the reimbursement process goes smoothly.
- Determine whether or not you obtain a claim for reimbursement: A majority of policies that provide Med-Pay will have the right of reimbursement. Keep in mind that there are some insurers that do not offer the right of reimbursement. Just to make sure, request a copy of the contract and review it as is.
- Read and determine the parameters of your claim: Since med-pay comes from your own insurance, it is best to seek out recovery from a third party. Note that if the opposing party is uninsured, you are entitled to a Med-Pay credit. You can not receive credit from the uninsured party if your case exceeds that amount available per uninsured motorist.
- Ask to participate in a fair way: If you have been a victim of a car accident it’s best to ask your insurance company to handle your case in a “fair” way. What this means is if the injured person has limited funds to provide the claimants involved in the accident, the insurer would be asking to allocate the funds in a reasonable way. This process is primarily known as “made whole” – whole principle of equity.
Med-Pay vs PIP
When comparing Med-Pay and PIP (personal insurance protection) it can be difficult to decide what route to take. Both types of coverage can also vary from state-to-state. Depending on your circumstances it’s important to determine which auto insurance would fit you best.
Med Pay Coverage
Med-Pay does not and can not replace any kind of health insurance. What Med-Pay does do though is cover medical, recovery, and even dental expenses after an accident.
PIP or personal injury protection coverage is a bit more extensive than just covering your medical bills. With PIP insurance your psychiatric bills, rehabilitation expenses and occupational therapy costs are covered. It also offers insurance for lost wages.
You can not be insured under both Med-Pay and PIP at the same time. Only one can be selected.
Can I Cash out on Med-Pay?
If you are looking to collect under this type of coverage, you might be out of luck. You cannot collect under Med-Pay and also acquire compensation for the medical expenses you have acquired after an auto accident. As far as being able to cash out, normally you can’t.
Most insurance companies will not let you ask for a certain amount of money unless it is documented that you had out-of-pocket expenses. Your attorney will have to present medical bills to your car insurance, then your auto insurance will need to establish the kind of health coverage that you obtain. Once the documents are reviewed your insurance company will determine if your medical bills are not covered by your health plan.
Med-Pay Regulations in California
According to insurance.ca.gov, “All drivers and all owners of a motor vehicle shall at all times be able to establish financial responsibility and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle.”
You can have your license suspended or your car can be impounded if you do not have liability insurance. In the state of California, the general function of Med-pay does apply to insurers as well. Med-Pay will include coverage for your medical payments for you and your passengers – and also for immediate medical attention after the accident. Med-Pay applies only to the vehicles registered under the multi-vehicle policy.
The minimum amount that is necessary to have with Med-Pay is $1,000 dollars.
Seeking Legal Assistance?
If you or someone you know has been involved in a car accident and are seeking rightful compensation for injuries, the law office of Bisnar Chase may be able to help. Our personal injury attorneys have a 96% rate and have won over $300 million dollars for our clients. The attorneys at Bisnar Chase have been serving victims of personal injuries for 39 years in the Los Angeles, Orange, Riverside and San Bernardino areas. Contact us today and receive a free consultation. Call 949-537-2832
Bisnar Chase Personal Injury Attorneys
1301 Dove St. #120
Newport Beach, CA 92660