Medical Payments Coverage (MedPay): Definition, How It Works

• MedPay will cover your medical expenses as a driver, passenger or pedestrian in the event you are injured in a motor vehicle accident.
• It will also cover passengers who ride in your vehicle.
• Policy limits are low, but it can be an affordable supplement to your health insurance or PIP coverage.

People injured in car accidents are usually responsible for paying their medical bills, even if the collision was the fault of another driver. In these cases, the injured person’s health insurance or personal injury protection (PIP) coverage usually pays for the expenses.

However, if your PIP or health insurance coverage is insufficient, Medicare Payments Coverage (also known as MedPay) can help cover the additional costs.

What is Medical Payments Coverage?

Medical Payments Coverage is an optional insurance that reimburses you for medical and funeral expenses related to motor vehicle accidents, regardless of who is at fault.

MedPay protects you and your passengers in the following scenarios:

• If you or your passengers are injured in your vehicle
• If you are injured while riding in someone else’s vehicle
• If you are a pedestrian and you are hit by another vehicle
• If you are hit by a vehicle while riding a bicycle or using public transportation

MedPay complements your health insurance coverage. Because MedPay limits are low, your health insurance will pay for most of the expenses, and MedPay will start when you reach your health insurance limits.

Covering medical payments for personal injury protection

No Fault situations require drivers to have Personal Injury Protection (PIP). Error insurance covers up to a certain limit for accident-related medical bills, regardless of who is at fault.

In other states, erring drivers are responsible for victim injuries that occur in a crash. You have the option to sue the guilty party. However, it can take a long time to prove wrong and get compensation for your injuries.

Let’s say you don’t have health insurance and you get the maximum PIP coverage. In that case, you can use MedPay to fill in the blank, according to Jason Turchin, a personal injury and accident attorney at Jason Turchin Law Offices in Florida. Here are some of the key differences between MedPay and PIP coverage:

Bodily injury liability insurance covers medical expenses for passengers in another vehicle in which you are at fault.

What does medical payment coverage include?

Your MedPay insurance will go wherever you go, whether you are a pedestrian, driver or passenger. You are also covered outside the United States. Here are several expenses MedPay will cover:

• medical services: MedPay will cover hospital or doctor visits, EMT fees, ambulance, nursing care, and any other medical services related to the accident.
• Subscribing to health insurance or discounts: If your health insurance deductibles or deductibles are high, consider getting MedPay. It will cover the rest of your co-pay expenses or deductibles if you need to use your health insurance.
• Treatments: MedPay will cover everything from dental procedures to prosthetics, surgeries, and medications related to accident-related injuries.
• Funeral costs: If someone dies in an accident, MedPay will cover funeral expenses.

What does MedPay not cover?

MedPay will cover you in many car accident cases, no matter where you are. But there are many instances where Medi Payments coverage does not apply. These include:

• If you exceed your coverage limits: If you maximize your health insurance, PIP and MedPay coverage, you will have to pay the rest out of your pocket.
• Loss of wages: MedPay will not cover loss of income if you are unemployed due to an accident.
• Other drivers: MedPay does not cover injuries you cause to other drivers and their passengers.
• Injuries not related to motor vehicle accidents: MedPay will only cover injuries related to the accident – not other health problems that were pre-existing.
• Childcare costs: If you are not at home and cannot care for your child, MedPay will not cover the costs of childcare.

Do I need to cover medical payments?

Only two states require MedPay coverage: Maine and New Hampshire. Twelve states require a PIP. MedPay and PIP are optional for the rest, according to Insurance.com.

“Medical payments coverage may not be necessary if you have health insurance, because that generally covers the balance after a PIP,” Turchin says. However, MedPay guarantees coverage of 100% of your medical treatment, which means you receive treatment quickly, even if you’re wrongly mistaken in an accident, notes Turchin.

Even if it’s not mandatory, you may still want to consider MedPay under certain circumstances. For example, if your health insurance deductibles and co-pays are high, it may be worth getting MedPay. It may also be wise to purchase MedPay coverage if you frequently use your vehicle to transport unrelated people. For example, if you drive a carrier like Uber or Lyft, it may be wise to have MedPay coverage.

How much medical payment coverage do I need?

MedPay has fewer limits because it acts as a supplemental coverage for health insurance, or PIP. Limits can be as low as $2,500 or as high as $10,000, according to Insurance.com.

Medpay can cost as little as $2 a month, while PIP typically starts at $50 a month, according to Insurify.

The amount of MedPay coverage you should buy depends on how much you already have in health insurance or PIP. You may only need $2,000 in MedPay coverage if you have low deductibles for health insurance and co-costs. If you have high discounts and combined purchases, consider getting more MedPay coverage.

MedPay may not be necessary for drivers who have adequate health insurance or PIP coverage. But remember, in many states, a driver at fault is not liable for your medical bills. Owning MedPay can give you peace of mind that your expenses are fully covered in the event of an accident.