Do I Have to Pay the Insurance Company Back for Med Pay Coverage?

Yes. Your insurance company has a right to paid back for money it pays you under the Med Pay coverage in your policy. This right to reimbursement is called “subrogation.”

Subrogation allows one party to make a payment that another party owes, and then later collect that money from the party who originally owed it. For example, if a person is in a car accident, her Med Pay insurance may pay for some initial treatments.  Subrogation allows the insurance company to reclaim the money from the at-fault driver’s insurance money.

If you settle a personal injury claim or recover money in a personal injury lawsuit and Med Pay covered some bills, the appropriate amount of money will be deducted from your settlement/recovery to repay the insurance company.

The insurance’s company subrogation rights are different for Med Pay coverage than for Personal Injury Protection coverage (PIP). You do NOT have to pay the insurance company back for PIP coverage.