13 Jun What is PIP and Med Pay? Info from a Top Medical Billing Company
There are two types of insurance coverage offered to those who drive in no-fault states. Such states require that all drivers carry a minimal amount of insurance that is designed to pay for injuries sustained in a car crash. This insurance may be used to pay for your injuries and others who are in your vehicle at the time of an accident.
PIP and MedPay
Personal Injury Protection (PIP) and Medical Payments (MedPay) insurance are the two types that are offered in no-fault states. They are similar in that in the event of an accident both may be used to pay the medical bills of the driver and their passengers.
Also, both may be utilized to pay for immediate care and short-term medical services. For those who also have health insurance, either PIP or MedPay will be utilized first if the covered party files a claim with the insurance provider.
Basics of Both
There are differences between PIP and MedPay, and these differences are important to consider since in a no-fault state you would buy one or the other type of coverage. One of the primary differences is that PIP has a 20% deductible, while MedPay has no deductible. However, PIP covers more than MedPay, and that is the tradeoff.
With either, if you are in a car accident you must use and exhaust all benefits afforded by MedPay or PIP before utilizing your health insurance. Failure to do so may result in your health insurance provider refusing to pay for any part of your medical expenses associated with or caused by a vehicle-related mishap.
What MedPay Covers
With MedPay, you must pay your medical bills upfront and get reimbursed. MedPay offers coverage for a range of expenses, including those that are reasonable and necessary in instances of medical, surgical, dental, and chiropractic treatments. Also covered are EMT and ambulance services, X-rays, hospitalization, nursing services, prosthetic devices, and funeral expenses.
For those who already have health insurance or are part of a HMO, MedPay is usually not necessary, as it tends to offer much more limited amounts of coverage. MedPay usually tops out at $25,000.
What PIP Covers
PIP covers all of the services and expenses that MedPay addresses, plus more. PIP also includes psychiatric, physical, and occupational therapy and all and any other type of professional health services. Lost wages, reasonable related costs other than medical expenses and losses related to not being able to work, and a basic death benefit are also often a part of PIP coverage. However, PIP policies do vary so always check the details of your specific coverage.
Minimum Coverage Varies
There are minimums in states regarding liability insurance. Liability insurance is designed to cover expenses for injuries to others and property damage incurred during a car accident for which you are deemed to be responsible. Thus, if you are at-fault, your insurance will pay the expenses of others.
In Arizona, for instance, the minimum coverage required by law is 15/30/10. These basic figures translate into $15,000 per person bodily injury, $30,000 per accident bodily injury, and $10,000 per accident property damage. However, you may elect to pay for more liability coverage. For coverage higher than 15/30 you may decide to purchase 25/50, 50/100, 100/300, or 250/500, with the property damage number, the third figure in our original example, varying.
MPMR is a top medical billing company that works with medical practices and ambulatory surgery centers nationwide. This includes helping with personal injury billing as well. The physician billing firm is full service and can help with practice management consulting as well.
Call (951) 757-2056 today for a complimentary 30 minute phone consult to find out how the top medical billing company can help you!