Mandatory MedPay Benefit Required for Auto Policies in 2009
Patients, friends, and family,
As a result of 2008 legislation spearheaded by the hospital special interest groups in Colorado, a new law (Senate Bill 11) has passed to protect Colorado drivers financially after the no fault auto insurance law Colorado was eliminated by past Governor Owens. In 2009, all Colorado auto insurance policyholders at renewal must provide written refusal to their auto insurance agents stating they do not want a Med Pay benefit on their policy. It is already commonly carried by most informed Colorado drivers but, in 2009, it will become mandatory unless you refuse it in writing. It is in addition to liability, comprehensive, and collision coverages which do not cover your own medical expenses.
A Med Pay benefit is necessary should you or an occupant of your car be injured regardless of who is at fault. It is a limited dollar amount between $3,000-25,000 and only intended to cover an injured party's immediate medical expenses until the at fault party (if one even exists) can be held liable by reaching settlement with the at fault's insurance carrier which can take between 6-36 mos.
Without this MED PAY coverage (which costs only $5/month on average), YOU must pay for care received from paramedic agencies, emergency room, doctors, therapists until your case is settled and you receive payment from at fault party. If you were at fault, you are forced to try and use your health insurance. The auto insurance industry is falsely telling policyholders that if they have health insurance then they don't need Med Pay coverage. Wrong, you simply cannot use your health insurance to cover treatment for injuries sustained in an auto accident unless the provider chooses to do so. See reasons below.
1. Almost all healthcare providers won't bill health insurance for an auto injury/tort case because of the higher documentation standard/time it takes to treat an auto case adequately. Auto cases require we document/dictate causation, maximum therapeutic benefit, apportionment, impairment/work restrictions etc. Health insurance reimbursements are lower because this higher level of work is not required for a non-auto related injury.
2. Many healthcare providers won't treat on a lien (legal name for a promise to pay filing with State) until settlement for auto cases requiring patient to self-pay out of pocket. How would your business operate if all accounts were paid 2 years after the service was provided?
3. Most health insurance policies have a high deductible and are subject to policy terms like you can't see an out of network provider. Health insurance also won't cover an injured occupant in your vehicle who doesn't have health insurance and Medpay coverage may even prevent them from litigating.
3. Auto insurers want the injured party and doctor to feel financial pressure to settle prematurely to get your medical bills paid. This Medpay benefit will reduce/eliminate this pressure so you can settle when your doctor tells you he/she has clear prognosis on your case.
4. Medpay benefit is VERY cost effective. Where else can you get a $5000 accident benefit for only $5/month! What would same $5/month get you on your health insurance policy? NOTHING!
Patients, you need MED PAY benefit for $5/month. This coverage will save your family money in the long run, offer a cheap supplement to your health insurance, and is a GOOD FINANCIAL DECISION. Please call us or your auto agent with any questions as we feel it our professional responsibility to let our patients know the facts about this law. All the agents we spoke to support the need for this coverage and actually told us only the corporate headquarters wants policy holders to opt out of this coverage. Who is looking out for your interests? Your agent and healthcare providers are!
To review actual bill go to:
Jeremy Rodgers, DC, ATC Maureen Thomm, DC
Colorado Sports Chiropractic Center