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Why You Should Have Medical Payment Insurance On Your Auto Policy

Medical Payment Insurance For Injury Claims

Published on by: Norman Miller

Medical Expenses Are A Common Reason People File Bankruptcy

Assume you are injured in an automobile accident and you go the Emergency Room and incur a few thousand dollars in medical bills. You may be able to pay for these bills with your health insurance, assuming you have it, however you can also use Medical Payment coverage on you auto insurance to pay these bills. If you lack insurance, and don’t hire an injury lawyer, you will be forced to pay the entire bill without any help. Medical Payment Insurance can help to protect you from this bad situation.

Medical expenses are one of the most common reasons that people file for bankruptcy. If you have bneen injured ina car wreck, motorcycle wreck, or trucking accident you need to contact an attorney to assess your potential financial liabilites.

Medical Payment Coverage

Medical Payment coverage, or medpay, is a relatively inexpensive form of coverage that you can add on to your auto insuranceIt basically replaced the “no-fault” coverage that was mandatory in Georgia at one time. However, “no-fault” coverage was repealed in the early 90’s and has been replaced by optional medpay coverage.

Medpay coverage basically pays the medical bills up to the limits of the policy of anyone injured while riding in or driving your car (including you), no matter whose fault the accident was. (Conversely, if you are riding in someone else car and are injured in an accident, you can get their medpay to pay your medical bills even if the accident was not their fault.) Insurance companies only have 60 days to pay these bills or they can be required to pay very high penalties and fees.

Advantages of MedPay

There are two distinct advantages of using the medpay coverage instead of your health insurance. First, you do not have to worry about any deductibles or co-pays with medpay. The insurance company will pay any reasonable and customary charges for medical treatment that is related to the accident. Second, and most importantly, when you recover a settlement or verdict against the at-fault party, it is unlikely that you will have to reimburse the medpay insurance company for the medical bills they paid out of said settlement or verdict. They may tell you that you have to, but State law does not require it in most cases. However, if your health insurance is provided by your employer, unless you work for the government, that would be controlled by a Federal law called ERISA that would probably require that you reimburse your health insurance carrier out of your settlement. That could cost you thousands of dollars. Of course, on the other hand a car insurer may be able to set-off what they paid on medpay from any uninsured/underinsured motorist payments.

As you can see, how you pay for your medical bills after a car accident is an important decision that can cost you tens of thousands of dollars. If you are injured in an accident, you need to contact The Atlanta Accident Attorney at 770-284-3727.