What Is Medical Payment Insurance?

Having enough and the right kind of insurance can be a lifesaver if you are injured. After an illness or accident, you may find yourself unexpectedly buried in medical bills, unable to work and having to make changes to your daily routine. Having the right kind of insurance can be a factor in the quality of health care you receive. Even though emergency rooms are required to treat everyone regardless of ability to pay, if you do not have insurance, you may not have access to specialists and tests that can help you fully recover.

Identification

Medical payment insurance, also known as Med Pay, pays for needed treatment in the case of injury sustained in an automobile accident. In the case of automobile accidents, your medical bills are covered regardless of who is at fault. Med Pay covers the cost of whatever treatment is not already covered by your primary health-care insurance. Med Pay will usually cover services such as chiropractic care, which is not always covered by health-care insurance.

Benefits

Medical payment insurance will cover you and any other passengers who were in your car at the time of the accident. It will also cover anyone who is listed on your policy to drive your vehicle. With some insurance policies, you are also covered if you are walking or bicycling and are hit by a car. In addition, you may be able to purchase a policy that covers injures sustained by you or family members while riding in someone else's car. It can bridge the gap by covering services not paid for by your health insurance, such as co-pays, deductibles, dental work, specialized nursing services, funeral costs and lost wages. Since it covers everyone in your car, it is especially helpful if the other parties do not have health-care insurance and need treatment.

Features

In some states, it is mandatory to carry medical payment insurance. In other states, it is not even available. Even if you have health insurance, your bills may first be covered by your medical payment insurance. When that is exhausted, your health-care insurance company will begin to pay. This is usually the case in states where there is a no-fault policy regarding auto accidents. In these situations, your medical payment insurance policy must cover your costs first. Check with your current car-insurance company to find out if your state requires this coverage, what limits are imposed, and if you already have it on your policy.

Considerations

Before purchasing medical payment insurance, review your primary health-care insurance coverage. This will help you to avoid paying for duplicate coverage, and will show you areas in which your health-care coverage might be lacking. You can buy insurance in the range of $25,000, up to $1 million to $5 million worth of coverage. Adding Med Pay to your insurance policy is usually very affordable, and can cost as little as $20 per year. This amount varies based on your insurance company's policies and how much coverage you purchase. Each person's individual situation must be considered to determine if Med Pay insurance makes sense for her.

Warning

Most medical-payment insurance policies require that you pay for your treatment up front, then submit the receipts to be reimbursed. However some health-care providers may be willing to bill your auto insurance company directly. Check with your local health-care provider about their policies. If you have Med Pay insurance and you need to file a claim, it may raise your policy premium, especially in the case of severe injury to you or your passengers. Again, consider all of your options before purchasing this type of insurance if you are in a state that does not require it.