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What is Medical Payments Coverage?

Posted on November 15, 2022 in

Medical payments coverage, also known as “Med-Pay,” is designed to provide compensation for various medical expenses that drivers and their passengers incur after being involved in a car accident in Colorado. This compensation will pay coverage regardless of who caused the accident. This type of coverage is optional for Colorado drivers, though experts strongly encourage having this type of coverage as a part of your policy. Here, we want to discuss how Med-Pay works. 

What is Med-Pay in Colorado?

Medical payments coverage, commonly referred to as Med-Pay, adds an additional layer of protection for drivers. In Colorado, every auto insurance carrier is required to offer at least $5,000 in Med-Pay coverage to drivers, and drivers have to sign a rejection form saying that they do not want this type of coverage if they so choose. However, individuals can certainly purchase higher amounts of Med-Pay coverage.

Med-Pay will cover various types of expenses after a vehicle accident, and they will pay for coverage regardless of which party caused the incident. There are some benefits to this type of insurance, including the fact that individuals can recover compensation fairly quickly without having to prove who caused the accident. Some of the main types of coverage individuals can receive if they choose to use Med-Pay includes:

  • Copays or health insurance deductibles
  • Hospital or doctor office visits
  • Any necessary medical scans
  • Surgical expenses
  • Prosthetics
  • Emergency medical services
  • Professional nursing services

What are the Benefits of Med-Pay in Colorado?

As we mentioned above, one of the main benefits of Med-Pay is that individuals can recover compensation fairly quickly after an accident, regardless of who caused the incident. Individuals who do not have this type of coverage may struggle to pay medical bills, especially if they are deemed to be at fault for the incident. In this situation, individuals will typically have to pay out of their own pocket for their medical expenses. 

The mandatory liability coverage you have to carry in this state will not pay your medical bills if you cause an accident. It will pay your passengers’ medical expenses but not yours. If you have Med-Pay, this will help pay your medical expenses.

If another driver is at fault for the incident, you will typically pursue compensation from the other driver’s insurance carrier for coverage of your medical bills. However, if you do have Med-Pay, you can tap into this coverage initially for a quicker payout, and your insurance carrier will pursue repayment of this compensation from the other driver’s insurance carrier.

What are the Med-Pay Limits?

Med-Pay coverage limits are really up to you. The total amount of compensation you receive if you tap into your Med-Pay benefits will revolve around how much insurance you have chosen to purchase. Even though Colorado insurers are required to offer $5,000 in Med-Pay coverage, you can certainly purchase higher amounts. In fact, you should strongly consider purchasing higher amounts of Med-Pay because $5,000 is not much when we begin to talk about medical care. A single emergency room visit could easily reach $5,000, depending on the severity of your injuries.