Medpay wants medical bills paid back after settlement

I have Medpay Insurance on my auto policy. My insurance paid my medical bills from my accident and now, when I just settled my case, they want their money back. That seems totally unfair as I paid the premiums all along and they really aren't paying my bills at all! Can they do that?

A. I agree with you that insurance companies are very unfair about this, but from my time in the trenches, I know they are always unfair.

Can you get out of repaying? Well, that depends.

First, get ahold of your auto insurance policy and see if it clearly states they are entitled to medpay repayment. If it doesn't clearly say that, then they aren't entitled to it. Many times insurance will ask for repayment even though the policy gives them no such right.

If the policy does give them the right to repayment, your state may allow reduction in their repayment for a sum proportionate to the attorney fees and costs you've paid.

So if your attorney fees are 1/3 and the medical bills paid are $5,000, you would get to reduce the repayment by $1666.

Finally, many states have a " made whole" rule. Maybe there's a $100,000 policy but your medical bills are $30,000 , your wage loss is $25,000 plus you may have future medical bills and wage loss.

In many states, you have not been made whole and will not have to repay.

The rules on medpay repayment are complex, but most of the time an experienced personal injury attorney can reduce or eliminate the amount to be repaid.