Understanding MedPay and How it Can Help

Helping hands.

Medical Payments Coverage

Contrary to popular belief, health insurance isn’t the only financial assistance people can attain to help pay unforeseen medical expenses after a car accident. Medical payments coverage, more commonly known as MedPay, is a state-required add-on to car insurance that helps auto accident victims pay for the medical bills associated with that accident, no matter who is at fault. It even covers costs if the policyholder was on foot and hit by a vehicle, or driving someone else’s car.

10 Common MedPay Myths

Sometimes people may be afraid of keeping or using their MedPay coverage because of misconceptions or gaps in understanding. We can help. Here are some common myths associated with medical payments coverage.

Myth #1: I can’t get MedPay because I wasn’t at fault for the car accident.

Truth: MedPay was developed and mandated by Colorado law to help protect each individual and their health providers after car accidents, no matter who’s at fault. Until the case has been settled, Colorado is a “no-fault state,” placing the burden of determining fault on insurance companies and often, attorneys in a court of law.

Myth #2: I don’t qualify for this type of coverage.

Truth: Medical payments coverage is a state-mandated add-on to regular car insurance, so everyone qualifies. This can protect you, your family, employees, and other passengers in your vehicle, and anyone can sign up.

Myth #3: I don’t have to sign up for MedPay.

Truth: In the state of Colorado, all insurance companies must offer their customers a medical payment policy. While you can opt-out of this, it’s highly unrecommended, and you must sign a waiver stating that you choose to do so.

Myth #4: MedPay isn’t that important.

Truth: This form of financial aid enables accident victims to get the vital health care they need, right away, instead of having outstanding bills while waiting for cases to settle. It also ensures health providers are compensated for their services, instead of having to take a gamble on health insurance and whether they’ll payout. Often, health providers won’t take patients without MedPay because of the liability of never getting paid.

Myth #5: Filing a medical payments claim will increase my insurance premiums.

Truth: If it’s determined that you are not at fault for the accident, it’s illegal for the insurance company to increase your insurance premium. They only increase this if it’s later decided that you are at fault for the auto accident.

Myth #6: I have to pay back all the benefits I’ve used from MedPay.

Truth: If you’re not at fault for the car accident, your insurance will recoup all the MedPay money you’ve spent from the at-fault vehicle’s insurance.

Myth #7: Medical payments coverage is just like health insurance.

Truth: Health insurance companies will often dispute claims related to auto-accidents if their members are not at fault, causing payments to become denied or recalled. This creates a huge hassle for patients and providers alike. MedPay operates far differently from health insurance in that it’s easier to retrieve financial benefits and payout for patients that are at fault in auto-accidents.

Myth #8: My insurance company in Colorado (or another required state) is saying that I don’t have coverage.

Truth: Unless you signed a waiver to remove this benefit from your insurance, it’s illegal for you not to have it. Your insurance company must be able to produce a signed waiver as proof if they are disputing that you have medical payments coverage.

Myth #9: I already used my benefits once, so I can’t use them again.

Truth: Financial aid disbursed from MedPay is per-incident, no matter the time in between. Even in the unlikely event you were in another accident the next day or soon after, you’d have a separate $5,000 to use for that accident.

Myth #10: I have to pay a deductible before receiving my financial benefits.

Truth: You don’t have to pay any deductible before utilizing MedPay benefits like you would with health insurance.

What Does MedPay Cover?

Person using a card to pay something on their laptop.

Confirm with your insurer the specifics of what MedPay covers in your state, as it differs depending on location. In a small number of states, it isn’t available at all.

What it covers (generally): 

  • Medical, dental, surgical, and chiropractic diagnostics and treatment for injuries you and your passengers attain in a car accident while riding in yours or someone else’s car, or as pedestrians
  • Ambulance costs
  • Funeral costs if the accident is fatal

What it doesn’t cover:

  • Wage reimbursement if you cannot work due to injury from the accident
  • Child care costs if you’re restrained due to accident injury
  • Treatment for other drivers involved in the crash (liability insurance does cover this)
  • Any unrelated injuries, damages, or health problems 

Limits and Costs

The maximum amount of money you can be granted from MedPay is its limit, and the higher the number, the more the plan will cost. Each maximum changes by state, and for Colorado, that maximum is $25,000, with the minimum legal amount being $5,000. Determining the amount you should sign up for is a decision only you can make, but most people tend to decide based on their health insurance and financial situations. Costs vary based on how much coverage you sign up for, driver age, and location. In Colorado, the price per month is about $5 for $5,000 worth of coverage.

Talk to Your Insurer

Give your car insurance company a ring and ask them about MedPay and all the specifics of your plan if you live in Colorado or other mandated state. Although the add-on to your insurance is required by law in Colorado, you do have the right to waive it to lower your monthly payment. This waiver has to be signed in writing.

If you’ve already removed this coverage from your insurance, consider making it active again. It can end up paying off in the end if you or a loved one need emergency medical care after an auto accident. It never hurts to be prepared and know what resources you have available to you.

Leave a Reply

Your email address will not be published. Required fields are marked *