Does Colorado Require Medical Payments On Auto Insurance?

Does Colorado Require Medical Payments On Auto Insurance? No, however, it is a valuable option to add to your car insurance policy in the event of an accident. Medical Payment Coverage, or Med Pay, is a type of insurance coverage that helps to pay for medical expenses. Med Pay coverage is optional, but it can be a valuable way to help cover the costs of medical care. Med Pay coverage can help to pay for medical expenses that are not covered by health insurance, such as co-pays, deductibles, and other out-of-pocket costs. Med Pay coverage can also help to pay for medical expenses that are not covered by Medicare or Medicaid.

Med Pay coverage is optional

You do not have to purchase it in order to comply with Colorado law regarding insurance coverage. Colorado law requires your insurance company to offer the option to buy $5,000 in Med Pay coverage at the time you buy your car insurance. If you do not want to buy Med Pay, Colorado law also requires that you sign a written form showing that you were offered $5,000 in Med Pay and that you affirmatively chose to reject Med Pay coverage. If the insurer cannot provide the written rejection, Colorado law reforms your policy to give you $5,000 in med pay benefits.

Many people believe that if they have health insurance from another source (Medicare, Medicaid, or through their employment), it is not necessary to purchase Med Pay coverage for their auto. However, even if you have health insurance available to you from another source, it is a mistake to pass up the opportunity to purchase Med Pay coverage on your automobile insurance policy medical payments coverage is optional in some states and required in others. Medical payments, also known as Med Pay, helps pay medical bills resulting from injuries from an auto accident. This optional coverage (in most states) can be used regardless of fault for accident-related medical treatment.

Medical payment coverage

Colorado does not require medical payments on auto insurance.  We recommend all drivers maintain this coverage. Medical payment coverage pays for medical bills related to a motor vehicle accident, including bicycle and pedestrian accidents. Medical payments coverage can usually be purchased in increments from $5,000 to $25,000. The advantage of medical payment coverage is that it has no co-pays, no deductibles, and no network or provider limitations. If you have accident-related injuries, the bills are paid up to the amount of purchased coverage. Depending on the circumstances, some insurance companies have balked at providing medical payment coverage for bicycle accident cases. However, in most instances where a motor vehicle is involved in a collision, medical payments coverage is available to cover the driver’s or cyclist’s accident-related medical bills.

Will my insurance company have subrogation rights for Med Pay benefits?

Med Pay Subrogation is prohibited by statute in Colorado. C. R. S. § 10–4–635(3)(a) precludes an insurer from bringing either damages or subrogation claims seeking to recover benefits paid under an insured’s Med Pay coverage. Although C. R. S. § 10–4–635(3)(a) does not use the word “subrogation” it is, on its face, an anti-subrogation provision. The statute expressly prohibits an insurer from bringing “a direct cause of action against an alleged tortfeasor for benefits paid under Med Pay coverage. ” While the statute is not well written and arguments can probably be made to support Med Pay subrogation, the clear intent of the statute is to prevent/eliminate Med Pay subrogation in most instances. Additionally, the Colorado Supreme Court ruled against uninsured/ underinsured offsets for MedPay benefits as set forth in Calderon v. American Family Mutual Ins. Co., 383 P.3d 676, 678 (Colo. 2016).

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