It depends on the state in which you live. In some states MedPay subrogation is not allowed. You should check your state laws. But all health insurance companies allow subrogation as they pay your medical bills and then want their money back and will seek it out from your auto insurance carrier. MedPay comes into play only after your auto insurer has met all your medical expenses. Then your insurer will collect the amount from the insurance company of the other party involved in the accident through subrogation. Thus MedPay coverage ensures that the insurer meets your medical expenses first and then recovers the money through subrogation.
Once your treatment is over, the insurance carrier of the at-fault driver responsible for your injuries will confirm the MedPay amount. It will also pay through subrogation the amount you paid as out of pocket expenses and will compensate you for pain and suffering that you may have incurred.
MedPay coverage is different from Personal Injury Protection coverage (PIP) as PIP pays for the medical expenses of the insured person but it cannot be subrogated. The person can collect the cost of medical expenses in this case from his auto insurance policy. MedPay coverage is optional in many states.
In the state of Virginia, where MedPay is optional, a driver can opt to have MedPay or opt out of it. The driver’s health insurance provider cannot deny coverage for his medical bills in the event of an accident. But the driver has to compensate the health insurance carrier the amount once he receives his claim from his auto insurance.
You need to check your state laws about MedPay subrogation to make sure that you are adequately protected. You can contact the Department of Insurance of your state on their consumer line to seek help.