What is MedPay? Said out loud, it has the same ring as Medicaid or Medicare. While they sound similar, MedPay is very different from those programs. Let's take a closer look at this insurance policy and see what it's all about.
Medical Payment Insurance Definition
MedPay, formally called Medical Payments coverage is an optional, inexpensive auto insurance policy normally found in at-fault insurance states. MedPay provides a small amount of health coverage on top of health insurance and personal injury protection coverage.
These coverages, ranging between $1,000 to $50,000, provide immediate funding for medical treatments or funerals, especially before a case decision. Mississippi law states that anyone holding MedPay coverage must receive a payout, regardless of their liability in the accident.
How Does MedPay Work on Auto Insurance?
Guaranteed coverage is an attractive aspect of Medical Payments coverage. Mississippi comparative negligence law requires an accident settlement to be cut by an amount equal to the victim’s liability.
If a victim is found 40% liable for a car accident, they’d only receive 60% of their settlement. The at-fault driver receives nothing to pay for their repairs and medical expenses.
MedPay serves as a buffer, offering both the victim and the at-fault driver something to help them through the crash.
MedPay is extremely useful for anyone with high deductibles or no health insurance. It can be used for almost any medical expense, from ambulance rides to x-rays, surgery, and even dental work.
In a worst-case scenario, MedPay can be used to pay for a funeral. If you can’t wait for an insurance settlement, Medical Payments coverage may be the right decision.
Receiving Med Pay
However, insurance companies can wait up to three years to provide a MedPay settlement. The law even allows them to extend the period if they need more time. That means the insurance companies can delay a MedPay settlement longer than the statute of limitations for the accident itself.
Nobody should have to wait an unreasonable amount of time for their settlement. Anyone who suspects their insurance company of acting in bad faith should contact an experienced personal injury attorney.
If you paid for MedPay and did not receive coverage you might have a case. If you’d like an experienced Starkville injury attorney from Vollor Law Firm, P.A. Law Firm to evaluate your claim, please send us an email or call (662) 269-6188.