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Med Pay and Health Benefits Do Not Constitute an Impermissible Double Recovery

On Behalf of | Jun 4, 2015 | Personal Injury

In Massachusetts, many automobile insurance policies have medical payments coverage (hereinafter referred to as “Med Pay”) when PIP is exhausted or is not applicable to the accident, your automobile insurance will pay for the medical bills and expenses incurred as a result of an automobile accident from the Med Pay portion of the policy. In 2011 case from the Massachusetts Supreme Judicial Court, the state’s highest court decided that an automobile insurer must pay the policy holder the cost of a medical bill, even if the medical bill was covered under the policy holder’s health insurance. By way of example, a policy holder is injured in an automobile accident and incurs $1,000.00 in medical bills related to the accident. Under the Supreme Judicial Court ruling, the auto insurer would pay the policy holder the $1,000.00 for the medical bills, even if the policy holder’s health insurance carrier has already paid the bill under its policy. The Court reasoned that unless the auto insurance policy restricts the payment, there is no prohibition on receiving the double recovery as the policy holder paid for this benefit and should receive it according to the terms of the insurance policy.

If you have any questions regarding insurance coverage as a result of an automobile accident please contact an attorney at Hamblett & Kerrigan for a consultation.

 

Kevin P. Rauseo is a former director at Hamblett & Kerrigan P.A. and has since been appointed as a Justice for the New Hampshire Circuit Court.  Please feel free to contact another attorney at Hamblett & Kerrigan to discuss your legal issues.

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