Med Pay Coverage and Liens Trickiness
Some of you won’t know what Med Pay is, so we’ll start with that. You have to have liability insurance on your automobile, right? Well, you can purchase extra coverage, too. Some of us get collision coverage, which pays for your car damage. But you can also purchase medical payments coverage (the cool kids call it “Med Pay”) which can help pay for medical treatment necessitated by injuries sustained in an auto accident, whether it was your fault or not. It’s good stuff!
But you have to be careful when accessing it, and not for the reason you think. Med Pay is no-fault coverage, which is short hand for saying that making a Med Pay claim on an accident that wasn’t your fault won’t give you insurance points, and won’t raise your premiums. And it can be super handy in helping to pay for your treatment costs while you await your liability settlement.
As always, there can be problems. One problem I see is that when there are health insurance liens or claims for reimbursement that attach to your claim. There are some health insurance plans that allow for subrogation, meaning if they pay for your medical treatment, and then you get money for that same treatment, you have to pay them back. Some of those plans have a right of reimbursement over your Med Pay money, too. What that means is if you spend that Med Pay money when your health plan had a right to it, you could be jeopardizing your coverage.
This can be a bit complex for a short blog post; heck, it can be a bit complex for a long conversation. But this is all the more reason that you should have a personal injury attorney if you have an injury claim. This is exactly what we’re here for, so please call someone. Call me! 919-929-2992.
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