Med Pay: A Brief Debriefing
April 18, 2018
“Health coverage through your automobile insurance policy is a great way to double-down on your compensation.”
Choosing an Auto Insurance Plan is similar to trying your hand at the slot machine. You enter a certain amount, press the button, and hope to make double or triple your money. If you bet pennies, you win (or, more likely, lose) pennies: if you enter $50, you win or lose $50.
It’s a similar protocol with Auto Insurance; the amount you pay the insurance company will reflect the amount you’re reimbursed, should you—by your fault or someone else’s—get into an accident. Driving a car and feeding a slot machine are both risks, each with mostly random and unpredictable outcomes (if you follow the analogy through, you’ll see that enrolling in automobile insurance is actually betting that you’ll get into an accident). With the exception of the lottery, where probabilities of winning are exceedingly low, wagering a minimal amount for maximum value is unheard of.
With the principles of risk and reward fresh in mind, let’s talk about Med Pay. Med Pay is an option offered by most auto insurance plans. Under the coverage of Med Pay, the policyholder can submit their medical bills to their automobile insurance company for payment under the provisions of their 1st party coverage.
In simplistic terms, MedPay is a type of health coverage offered through an individual’s auto policy. Pay-outs and coverages of MedPay are often-times contingents on that individual’s health insurance plan as well as myriad other factors. Why might an individual want two health insurance plans? After all, payment and reimbursement for one plan are equal to payment and reimbursement of two plans.
What distinguishes Med Pay from a second health insurance plan is its cost. Enrolling in Med Pay is always a fraction of the cost of a second health insurance plan. Surprisingly, a number of people pay for Medpay coverage but don’t utilize it because they don’t know they have it or they don’t know how/when it applies. Perhaps unsurprisingly, insurance companies aren’t fast to inform their valued customers of their capability to rightfully make claims on their Med Pay policy.
Check your Auto Insurance plan to see if you’re already paying for Med Pay coverage. If you aren’t, I strongly advise you look into enrolling in a plan. It’s low payment with moderately good pay-out. If you are enrolled, remember to utilize the coverage! Paying for insurance and not making claims is like playing the slots and leaving your winnings in the machine.