In previous articles on this website, we have covered the importance of buying medical payment coverage for your policy, regardless of whether or not you are a driver who also has health insurance. But the lawyers at Steinberg Injury Lawyers want to put things in perspective for our readers and provide them with real-world examples that may help them determine how much med pay coverage they need.
It is not uncommon for those who purchase private health insurance to have high deductibles. Even some employer-paid health insurance coverage requires the employee to cover a minimum deductible each year before full coverage kicks in.
Depending on the type of health insurance policy you have, you are most likely responsible for a portion of your medical care, in excess of your deductible. Some companies have an 80/20 split, meaning that your health insurance pays for 80% of your bill, and you are responsible for the remaining 20%.
Suppose you are rear-ended in Santa Monica and are transported by ambulance to the emergency room. Your hospital bill is $7,500. You have a $2,500 deductible that you must meet each year before your health insurance kicks in. In this instance, you would have to pay $2,500 out of pocket for your deductible, and then 20% of the remaining $5,000 bill, or $1,000. Sure, you may be reimbursed down the road by the at-fault party’s insurance company, but that could take months. In the meantime you are stuck with $3,500 that needs to be paid out-of-pocket.
If you have $5,000 in med pay coverage, those costs could be completely covered immediately. The same would hold true for passengers in your care that are in the same situation.
Talk to your agent about this important coverage, and ask about the cost of adding it to your policy – it may be cheaper than you think.
You can also contact the Santa Monica’s premier car accident injury lawyers at Steinberg Injury Lawyers by calling 800.989.6385 for your complimentary case evaluation and free copy of their book, Seven Biggest Mistakes That Can Ruin Your California Injury Case.