Kannan Law is your best ally for MedPay reimbursement cases
Anyone with auto insurance might assume that the policy covers all or at least most of the financial losses you could incur in the event of an accident or theft. However, before making that assumption, it’s important to keep in mind that auto insurance laws differ from state to state, and every policyholder should be thoroughly familiar with the statutes regarding claims before taking any financial action.
MedPay Benefits coverage, better known as “MedPay,” is an 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 some other states). These policies have specific coverage limits that must be equitably related to the medical care necessary for a car accident causing bodily injury.
In other words, MedPay is a form of liability insurance coverage that pays, according to specific coverage limits, the insured driver’s medical claims for injuries sustained as a result of a car accident, regardless of fault.
MedPay insurance coverage will be responsible for paying all of your reasonable and necessary medical bills (and those of your passengers) resulting from any bodily injury arising from an accident. If your health insurance doesn’t cover all of your medical bills, or if the person who caused your injuries doesn’t have insurance or your insurance company doesn’t pay your bills promptly (for example, if there’s a dispute regarding liability), 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 it contains liberal coverage for a wide range of medical care.
Whenever you need MedPay reimbursement, the attorneys at Kannan Law are here to help.
California case law recognizes and follows the Made Whole Doctrine. This means that the insured (you) must be made whole before the insurer (your insurance company). This prevents your insurance company from taking money from someone who injured you or damaged your property unless you receive compensation, meaning the first step is to pay the full amount owed.
In the United States, insurance companies have reimbursement rights. California also 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 reimbursement from you or the responsible party’s insurance company.
For example, if you were injured in a car accident, you don’t have health insurance, and an ambulance takes you to an emergency room for treatment, the ambulance turns the medical bills over to your insurance company for settlement. If you decide to sue the other driver and are able to recover money from them, your insurance company could require you to pay what they spent on your bills, as you will be considered “made whole.”
However, if you have additional expenses, your attorney could argue that the car insurance company isn’t entitled to receive the money, as you haven’t “recovered.”
California Common Fund Doctrine
In addition, California is also subject to the Common Fund Doctrine, which requires insurance companies to pay a portion of the money they recover to an accident victim’s attorney if the insurance company does not retain its own attorney. Since the attorney in question makes an effort to resolve the case, including returning the insurance company’s money, 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 “Jose” was the cause of the accident, your insurance company will pay your medical expenses, but a lawsuit will also be filed against you, resulting in a larger settlement.
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 you were paid for your medical bills. However, when this doctrine exists, the insurance company will not receive the equivalent of attorney fees, since they did not hire one.
Please note that if you have obtained a car accident settlement against a party who injured you in an accident, your insurance company will seek reimbursement for the amount of any MedPay payments made to you. Subrogation rights can significantly reduce or even negate your recovery. However, your personal injury attorney can limit your insurance company’s subrogation rights to ensure you receive the largest possible settlement. For this reason, it is important to hire a professional lawyer experienced in MedPay reimbursement cases. They will be able to address your issue and help you resolve it satisfactorily.
The injury attorney at Kannan Law is licensed in Illinois, California, and Colorado, so they can help you if you were involved in a car accident and have MedPay coverage. Contact them today about your case!
Frequently Asked Questions
What is MedPay, and how does it work?
MedPay, or medical payments coverage, is a component of some auto insurance policies that covers medical expenses for injuries sustained in a car accident, regardless of fault. It can cover the driver, passengers, and, in some cases, pedestrians. It requires no co-pays or deductibles.
What types of medical expenses does MedPay reimburse?
MedPay can cover a variety of expenses, such as:
- Hospital and ambulance bills
- Doctor and specialist visits
- X-rays, MRIs, and other exams
- Physical or rehabilitation therapies
- Necessary prosthetics or medical equipment
Can I receive reimbursement directly, or does it go to the medical provider?
It depends on the agreement. In some cases, MedPay reimburses the healthcare provider directly. In others, you may receive payment if you have already paid the expenses out of pocket. It is important to keep all receipts and medical bills to present to the insurer.
How long does MedPay reimbursement take?
Reimbursement times may vary depending on the insurer and the documentation provided. It generally takes between 2 and 6 weeks after submitting all necessary documents. To avoid delays, be sure to submit itemized invoices and any forms required by the company.
Does MedPay affect my ability to file a personal injury claim?
Not necessarily. MedPay can cover immediate medical expenses while you continue your legal process. However, if you receive compensation for those same expenses in a settlement or lawsuit, you may have to reimburse the insurer (this is known as “right of subrogation”). It is advisable to consult an attorney to properly handle this situation.