What is Med Pay and Why Does it Matter?
In Colorado, Med Pay is a benefit you can purchase under your own auto insurance policy. It usually comes in benefit amounts of $5,000.00, $10,000.00 or $25,000.00. Depending on your policy, you may be able to purchase even more. Medpay coverage is inexpensive and has several significant advantages.
What Does Med Pay Cover?Med Pay covers your initial medical bills including ambulance, emergency room, imaging work and can be used for other medical treatment including physical therapy, massage and chiropractic.
Med Pay coverage is a good idea even if you have good health insurance. The reason is because Med Pay benefits never have to be paid back from the injury settlement proceeds. In contrast, when you use your health insurance to pay for your medical care after a crash your health insurance has what is known as a right of subrogation. This means the health insurance company has a right to stand in your shoes and look to the at-fault driver and his or her auto insurance policy for reimbursement for money spent on your medical care. Just about every car accident case in which the injured party has health insurance has subrogation claims that need to be negotiated and resolved. With Med Pay, however, there is never a right of subrogation for the medical treatment billed and paid for by Med Pay. This almost always puts additional money, often thousands of dollars, into an injured person's pockets at the end of the case. This additional money is on top of other money recovered for your injuries, damages and losses.
How Does Med Pay Work With Health Insurance?The best-case scenario is when an injured person has both Med Pay coverage and high-quality health insurance. Med Pay works in addition to your health insurance to benefit your case. Health insurance companies have contracts with many medical providers which provide substantial discounts in the cost of the medical care you receive. For example, if a hospital charges $10,000.00 for your emergency room visit, your health insurance will likely negotiate a substantial reduction in the amount that it pays. At the end of the case, the subrogation payment may be less than half what the hospital originally charged. This effect almost always puts more money into the injured person's pocket at the end of the case.
Remember, the goal of personal injury representation is to recover as much compensation as possible for your injuries, damages, and losses. Med Pay and health insurance can be helpful tools for reaching those goals.
Other ConsiderationsThere are of course other tools including knowledge of the insurance industry, timing of demands, negotiation, litigation, trial skill, and familiarity with each insurance company's negotiating style. Even if you don't have Med Pay or high quality health insurance, and many clients don't, you will likely benefit from the skill of an experienced trial attorney who can position your case for a favorable settlement or jury verdict.
The Max Law Firm is well equipped to help you seek the full compensation your case deserves. The firm understands the insurance industry and offers extensive trial experience from a former prosecutor who has gone to trial on numerous felony cases including First Degree Murder, Vehicular Homicide, Vehicular Assault, Attempted Murder, Sexual Assault, Domestic Violence, Assault, Robbery, Theft and Felony DUI.