Med-Pay

Med-Pay, short for medical payments coverage, is an optional auto insurance coverage that pays the policyholder's medical bills after a motor vehicle crash regardless of fault. Med-Pay limits are typically $1,000 to $10,000 per person, with $5,000 being common. Med-Pay differs from Personal Injury Protection in that it covers only medical bills, not lost wages or other expenses.

Med-Pay is available in most states, including fault states where PIP is not the norm. Texas, Georgia, Nevada, Arizona, and most other tort states offer Med-Pay as an optional add-on. The coverage pays primary or secondary depending on the carrier's policy language and the client's other insurance.

For personal injury practices, Med-Pay is an early funding source. The firm submits the client's medical bills, the carrier reimburses up to the limit, and the client recoups some out-of-pocket spend. Once Med-Pay exhausts, the firm pivots to liens for ongoing care. A pharmacy lien program like CreoRx then funds the prescriptions for the rest of the treatment.

Med-Pay is not subject to subrogation in most jurisdictions, meaning the at-fault carrier does not get to deduct Med-Pay reimbursements from the eventual settlement. This makes Med-Pay genuinely additive to recovery. Personal injury intake should always ask about Med-Pay limits and document them in the file.