COLORADO’S NEW MEDPAY LAWS

• Colorado Medpay laws have changed. Under the new law effective January 1st, 2009 auto mobile insurance providers must offer you at least $5,000 in Medpay coverage. The coverage may provide extra coverage to the policy holder and to passengers in the policy holder’s vehicle. Read more about the new law below.
• What is Medpay?
• Who is covered?
• What is the new law?
• Who is paid?
• What is the benefit of the new law?
• What policies are not covered by this new law?

What is medpay: Medpay is short for “medical payments coverage.” Medpay is additional coverage that you can purchase as part of your auto insurance policy that will pay for medical expenses from an auto accident. Medpay is different than health insurance coverage because you do not have to pay any deductibles or co-pays before medpay coverage can be used.

Who is covered: Anyone in your vehicle, even if they do not have health insurance, is covered by medpay. Medpay coverage can be used regardless of who was at fault for the accident.

What is the new law: When you renew a Colorado auto insurance policy after January 1, 2009, the insurer must offer you at least $5,000.00 in medical payments coverage. If you do use your medical payments coverage, your insurance company cannot get reimbursed from any amounts that you collect from an at fault party. If an insurance carrier does not offer at least $5,000.00 in medpay coverage it may be required to provide that coverage anyway. Which medical providers get paid first from medpay coverage is also controlled by the new law.

Who is paid: Certain medical providers are given priority over others when seeking to get paid from medpay coverage. Claims for ambulance trips, including air ambulances, are given the first priority, followed by claims by trauma physicians and trauma facilities, such as emergency rooms. After those providers are paid, medpay coverage can be used for other medical care.

What is the benefit of having medpay: The cost of medical care, especially emergency medical care, is very expensive. It is not unusual for medical providers to charge over $2,000.00 for an ambulance trip and routine emergency room visit. Even if you have health insurance, sometimes the co-pays and deductibles you are required to pay make it difficult to afford the care you need.

What policies are not covered by this new law: Policies written for coverage on motorcycles, motor-scooters, motorized bicycles, snowmobiles, or vehicles designed primarily for off-road use or on rails are not covered by this new law. That only means that an insurance company does not have to offer at least $5,000.00 of medpay coverage when writing or rewriting those policies after January 1, 2009. However, that coverage may be available, but the person applying for the insurance will have to ask for medpay coverage.

For more information regarding Medpay or your Personal Injury claim please fill out the contact form or visit our home page: