Medical payments coverage (MedPay) is a portion of your automobile insurance policy, which if you opt to purchase it, pays 100% of your medical bills up to the limit you selected. For example, if you select $2,000 in medical payments coverage, it would pay $2,000 of your medical bills. This is important because Personal Injury Protection (PIP) coverage pays only 80% of any medical bills resulting from an accident. MedPay picks up the additional 20% of the first $10,000 of your medical bills covered by PIP. After that, the bills will either be paid out of the proceeds of your case or be paid by your health insurance, depending on how you elect to pay those bills. It is important to speak to your attorney about which option is better for you.
It is important that you do not purchase too much MedPay. If you do chose to use health insurance to pay your bills, purchase only enough MedPay to cover the deductible under your health insurance plan. If you qualify for Medicaid, Medicare, or some other type of federally-funded medical insurance, then it may not be financially beneficial to you to purchase more than $2,000 of MedPay.