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Why should I have Medpay?

May 29, 2019 by Zach Elsner

Injured man filing for medpay with his insurance agency.

Many people opt out of medpay without understanding all of the benefits it can provide.  Medpay is medical payments coverage on your auto policy, and it provides coverage for medical treatment arising out of a motor vehicle collision.  It is offered in $5,000.00 increments, and many if not all insurance companies have a cap on how much coverage you can buy.  medpay only provides coverage for an injury caused in a motor vehicle collision, so it is not a replacement for health insurance.  However, there are several benefits to having medpay; and in many ways, it can be better than health insurance. 

Perhaps the best aspect of medpay is that it is much less expensive than health insurance.  Not only are the premiums relatively low, but like the health insurance we remember from many years ago, it doesn’t cost an arm and a leg to use it.  There are no deductibles for medpay, and they will usually cover your medical bills until your coverage limits are exhausted.  With rising health care costs, and universal health care non-existent, many people who have health insurance cannot afford to use it.  However, if you can afford the premiums to buy the coverage, then you are in luck, because it will cover your medical bills from the first dollar.

Another benefit of medpay is that fault doesn’t matter in determining coverage.  This means that even if the crash that caused your injuries was your fault, you can still use your medpay.  Obviously, the downside is that your rates may go up for causing an accident.  But, if your health insurance has a high deductible, medpay may be your best option.

Many people decline medpay because they have health insurance.  I think this is a mistake.  Not only is health insurance becoming more and more unaffordable every day for the average American, but you may be entitled to coverage under both medpay and your health insurance.  You may be able to submit the bills to your health insurance, and use your medpay to actually pay them if you have not yet met your deductible.  You also may be able to receive payment from both, depending on how your policies are written.  Because they are separate insurance policies, almost always from separate companies, you are paying separate premiums for each policy.  This often means you are entitled to the benefits from both, as it should:  you are paying for it after all.

Another great benefit of medpay is that there is no subrogation for medpay in Colorado.  Subrogation is a fancy legal term meaning the legal right to be reimbursed.  If you are involved in an auto accident that wasn’t your fault, and you have medpay coverage.  You can use the medpay to cover some or all of your medical bills incurred as a result of the accident.  If you also make a claim against the at-fault driver’s insurance and get a recovery from that claim, you may have to pay back your health insurance out of your recovery for some of the medical bills they paid.  But, if you used your medpay to cover those medical bills, you do not have to pay back your auto insurance carrier for the medical bills they covered.

There are many benefits to having medpay coverage, and it is prudent for anyone who drives in Colorado to seriously consider it. 

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