How MedPay and Health Insurance Affect Your Personal Injury Claim

How MedPay and Health Insurance Affect Your Personal Injury Claim

When you’re injured in an accident, multiple types of insurance might come into play—especially MedPay, health insurance, and third-party liability coverage. Understanding how they interact is key to knowing what you’ll actually receive from your settlement.

What is MedPay? Medical Payments (MedPay) coverage is optional insurance that pays your medical bills regardless of who was at fault. It’s usually limited (e.g., $1,000 to $5,000) but can be used to cover:

• ER visits

• Ambulance bills

• Chiropractic care

  
  

How Health Insurance Fits In If MedPay is exhausted or unavailable, your health insurance can cover additional medical costs. However, many health insurers have subrogation rights, meaning they’re entitled to reimbursement from your settlement.

Subrogation: What You Need to Know

• Your health insurer may file a lien against your personal injury settlement.

• Your attorney can often negotiate this lien to reduce the amount owed.

• Medicaid and Medicare have specific rules for reimbursement.

  
  

Bottom Line:

• MedPay helps with immediate bills.

• Health insurance covers longer-term care.

• Both may seek reimbursement, which can affect your final take-home amount.

Working with an attorney ensures these claims are handled properly and your settlement is maximized.