MedPay Versus PIP: Is MedPay Worth It?

Florida’s no-fault vehicle insurance system mandates that all drivers carry personal injury protection (PIP). This covers a variety of expenses in the event of a crash, including lost wages and 80 percent of medical bills up to $10,000. In some cases, however, PIP does not offer enough coverage to relieve Florida drivers of extensive medical bills. These can be covered by an elective program known as MedPay, which we explore in detail below.

Differences Between MedPay and PIP

Florida drivers often confuse PIP and MedPay, but these programs hold numerous differences:

• PIP is mandatory for all Florida drivers. MedPay is an elective program.
• PIP offers comprehensive coverage including loss of wages and services. MedPay is purely designed for covering medical bills and funeral expenses.
• With MedPay, insurance providers hold the right to subrogation — the ability to recover funds from drivers found at fault. No such right exists for PIP.

Frequently Asked Questions:

If I use MedPay to cover the 20% gap left by PIP, do I have to pay my insurer back from my settlement?

Yes. This is the “right of subrogation” mentioned in the blog. Unlike PIP, which you generally do not have to pay back, MedPay is considered a “collateral source” with a right of reimbursement.  If you win a settlement from an at-fault driver, your insurance company may place a lien on that settlement to recover MedPay amounts paid, but only if your specific policy includes a reimbursement clause and the insurer complies with the notice requirements of Florida Statute §768.76. However, a skilled lawyer can often negotiate this lien down under the “Made Whole Doctrine” or the “Common Fund Doctrine.”

Does MedPay cover the $1,000 deductible often found on West Palm Beach PIP policies?

Yes. Many Florida drivers choose a $1,000 deductible on their PIP to lower their monthly premiums. If you are injured, you are normally responsible for the first $1,000 out of pocket. MedPay can be used to cover that deductible immediately, potentially eliminating or significantly reducing your out-of-pocket costs for an initial ER visit or diagnostic scans, subject to your specific MedPay policy limits and coverage terms.

Can I use MedPay if I am injured in an Uber or Lyft accident in West Palm Beach?

It depends on your specific policy language, but typically, yes. MedPay coverage generally follows the insured person rather than just the vehicle, but whether it applies as primary or excess coverage in a rideshare scenario depends entirely on your specific policy language. Review your policy or consult with your insurer to confirm how coverage applies when you are a passenger in a rideshare or another person’s vehicle.

Why is MedPay particularly important for motorcyclists in Palm Beach County?

Unlike car drivers, motorcyclists in Florida are exempt from the state’s Personal Injury Protection requirement. This means a motorcyclist has no automatic $10,000 medical coverage. For riders in West Palm Beach, MedPay added to an existing auto insurance policy is often the only way to obtain immediate, no-fault medical coverage through an auto policy, though whether it extends to motorcycle injuries depends on the specific terms of that policy. Without MedPay, a rider may be forced to rely entirely on health insurance (which may have high copays) or pay out of pocket until a lawsuit is settled.

 Does MedPay coverage apply if I am hit by a car while walking on Atlantic Avenue or Clematis Street?

Yes. Much like PIP, MedPay generally extends to you if you are a pedestrian or cyclist struck by a motor vehicle. In the high-traffic areas of West Palm Beach, this is a critical benefit. If you are hit, your MedPay can be used to pay for ambulance fees and emergency room copays immediately, without waiting for the at-fault driver’s insurance company to determine liability.

When Is MedPay Worthwhile?

MedPay is a valuable option, but it’s not necessary for all drivers. Many are able to obtain sufficient medical coverage via employer-sponsored health plans. Others, however, lack quality health care coverage and worry about the financial burden they could face in the event of a devastating car crash. These drivers can find considerable peace of mind in exchange for MedPay’s modest premiums. Many drivers also appreciate the flexibility and freedom of choice offered through MedPay, with which there is no need for primary physician referrals. However, the potential for subrogation should be taken into account when determining whether to proceed with MedPay.

As a Florida driver, you deserve quality counsel and representation from a personal injury attorney with a strong track record. Don’t hesitate to get in touch with the respected team at Smith & Vanture, LLP. Contact us today to schedule your complimentary injury claim evaluation.

Contact Your Accident Lawyers in West Palm Beach Florida

Whatever you do, please talk to an attorney before you talk to an insurance company about your car accident. The insurance company’s job is to pay you the least amount of money, we want to make sure you are taken care of during your time of need.

Anyone in southern Florida who has a personal injury legal issue pending should contact Smith & Vanture, LLP for a full free injury claim evaluation. Always retain an attorney who can get you what you deserve for your injury.

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