After a car accident, you may start to wonder how the medical bills are going to be paid.
No Fault Vehicle Insurance
If you are covered by no fault vehicle insurance, the insurance company will pay the medical bills, regardless of who was responsible for the accident. In some cases, the insurer is also liable to compensate you for your loss of earnings. The maximum amount you can claim on account of your medical expenses varies from one state to another.
Your health insurance provider is responsible for paying the difference between your total medical expenses and the state’s no fault limit. If your medical bills exceed the no fault limit in your state, your health insurance will pay the remaining amount. In the absence of no fault car insurance, your health insurance provider is responsible for paying all your medical bills on an ongoing basis. (Learn what your options are if you have no health insurance).
Medical Payment Insurance Coverage
Some states have a system called medical payment insurance coverage as an alternative to no fault insurance. Popularly referred to as “med pay” coverage, this type of insurance is responsible for paying medical bills of the insured person and fellow passengers or drivers in the event of an accident, up to the policy limits, which usually do not exceed $10,000. This means that you need to pay any amount exceeding your “med pay” policy limit out of your own pocket. If neither you nor the negligent driver has a “med pay” policy, you need to pay all your medical bills out of your own pocket. Drivers in no fault states have the option of buying “med pay” coverage, but they often do not require using that option, thanks to the existence of no fault coverage.
The federal government offers this type of health insurance through a state program to people in the low income groups. If you are covered by Medicaid, your medical bills for any injury from an accident will be paid by this state program.
Medicare is like your health insurance and is responsible for paying all of your medical bills, should you suffer an injury from an accident and require long-term treatment. However, any medical bills paid by Medicare for any injury related to a car accident may need to be reimbursed.
If you are faced with huge medical bills after a car accident, call The Hoffman Law Firm L.L.C. at (314) 361-4242 to understand your legal options.