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Medical Payments Insurance (Medpay)

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My Auto Insurance Policy Includes Medical Payments Coverage, What is it?

Medical Payments Coverage or Medpay is a type of insurance coverage that will pay for medical treatment if you were involved in an auto accident. Medpay can be used whether it was your fault or someone else’s fault. There is usually a maximum amount of bills that your insured will pay, depending on the coverage amount. Most people have either $1,000.00, $2,000.00, $5,000.00 or $10,000.00 in Medpay coverage. Your Medpay will usually cover doctor visits, ER, urgent care, imaging diagnostics, orthopedic, chiropractic. The catch here is that the medical bills needs to be reasonable, necessary and related to the auto accident.

Medpay – Reasonable, necessary and related to the auto accident

Your Medpay coverage only extends to medical bills that are reasonable. I.e. they won’t pay your chiropractor $10,000.00 for two visits. They need to be necessary, meaning the treatment you sought was necessary to helping you. Finally the treatment needs to be related to the auto accident. Medpay will not pay for treatment not caused by or worsened by the accident. If you have a toenail infection that is not related to the accident, your medpay coverage won’t pay for it.

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Right of Reimbursement

Most insurance companies have a right of reimbursement if you end up receiving a settlement from the at fault party. This means, if you used the medpay coverage to pay for your chiropractic treatment and imaging while your claim against the third party was still ongoing and then at a later date you settled the claim, your insurance gets to be reimbursed for the medical payments they provided. It still may be helpful to use your medpay even though you will have to reimburse your insurance company. You might have medical bills that would have gone to collections in the meantime or if liability is disputed, you can make sure that you get the treatment you need without worry that you might be the one at fault. Talk to an attorney to find out more on medpay and whether its right for you.

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