What is MedPay reimbursement?
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Anyone with auto insurance might assume that the policy covers all or at least most of the financial losses you might incur in the event of an accident or theft. However, before making that assumption, it’s important to note that auto insurance laws differ from state to state, and each insured should be very familiar with the statutes where they are located regarding claims before making any decisions. any financial measure.
Med Pay Benefits coverage, better known as “MedPay” is additional coverage attached to a person’s automobile policy. This policy must be selected by the policyholder and is not required in the state of California (unlike other states). These policies have particular coverage limits that must be equitably related to the medical care necessary for an auto accident causing physical personal injury.
In other words, MedPay is really what it sounds like: it’s a form of liability insurance coverage that pays, based on specified coverage limits, an insured driver’s medical claims for injuries sustained as a result of an auto accident regardless of the nature of the accident. blame.
Med Pay insurance coverage will be responsible for paying all of your (and your passengers’) reasonable and necessary medical bills as a result of any bodily injury arising from an accident. If your health insurance does not cover all of your medical bills, or if the person who caused your injuries does not have insurance or their insurance company does not pay their bills promptly (for example, if there is a dispute as to liability), the MedPay coverage can provide a means to pay some or all of your medical bills.
It’s like having additional medical coverage attached to your car insurance and contains liberal coverage for a wide range of medical care.
California Law Regarding Med Pay Reimbursement
California case law recognizes and follows the Made Whole Doctrine (Made Whole Doctrine). This means that the insured (you) must be “in integrity” before the insurer (your insurance company). This prevents your insurance company from taking money from someone who hurt you or damaged your property unless you receive compensation. In other words, the entire debt, not just part of the debt, must be paid first.
In the United States, insurance companies have reimbursement rights, and California recognizes and allows an insurance company to receive reimbursement for money paid on behalf of its insured.
Subrogation is reimbursement. It arises when your insurance company pays money on your behalf and then seeks to be reimbursed by you or the responsible party’s insurance company.
For example, if you’re injured in a car accident, don’t have health insurance, and an ambulance takes you to an emergency room for treatment, you turn over the medical bills to your insurance company to pay them. If you decide to sue the other driver and are able to get money from him or her, your insurance company may require you to pay what they spent on your bills, since you will be considered “in full.”
However, if you have additional expenses, your attorney might argue that the auto insurance company has no right to receive the money since it has not been “recovered.”
California Common Fund Doctrine
In addition, California is also subject to the Common Fund Doctrine which makes insurance companies pay part of the money they recover to the accident victim’s lawyer if the insurance company does not have its own lawyer. Since the accident victim’s attorney strives to resolve the case, including repayment from the insurance company, the attorney should receive a fee from the insurance company’s recovery for their efforts.
For example, if you are involved in a car accident where “Joseph” was the cause of the accident, your insurance company will pay your medical bills and then a lawsuit against you will result in a settlement for a larger amount.
In this hypothetical case, your insurance company was not involved in the lawsuit, so without the Common Fund Doctrine, the insurance company could receive what it was paid for your medical bills. However, when this doctrine exists, the insurance company will not receive the amount equivalent to the attorneys’ fees, since they did not retain one.
Please note that if you have obtained an auto accident settlement against a party who injured you in an accident, your insurer will seek reimbursement for the amount of MedPay payments made to you. Subrogation rights can significantly reduce or even nullify your recovery of money. However, your personal injury attorney may limit your insurance company’s subrogation rights to ensure that you receive the largest possible settlement.
Injury attorney Alex Amar Kannan is licensed in the states of Illinois, California, and Colorado and can help you if you were involved in a car accident and have MedPay coverage. Contact him today about your case!