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.

How CreoRx helps personal injury firms

CreoRx is the pharmacy lien program built for personal injury law firms. Injured clients fill injury-related prescriptions at 67,000+ pharmacies nationwide with no upfront cost, the firm acknowledges the lien once in the attorney portal, and every charge is tracked in one place for settlement. See how CreoRx works for personal injury law firms, or book a short demo.