This article is a companion piece to On Subrogation: Medpay and PIP, in which RG subrogation attorney Jason Sullivan discusses the nuances of subrogating injury cases involving Medpay and PIP. Sullivan advises viewers on the importance of understanding state specificity in terms of insurance subrogation on injury claims.
What is Medpay and How is it Different than PIP?
Jason explains that Medpay is optional on auto policies in most states; it’s a largely voluntary feature. Medpay provides medical coverage in cases of injuries resulting from a motor vehicle accident, no matter who’s at fault.
PIP is almost the same thing, but with a wider scope of coverage, including reimbursement rights for lost wages, or coverage of personal services in cases of debilitating injury. PIP is mandatory in most states, and is comprised of specific language about what’s paid, what for, and how.
States differ in statutes on insurance subrogation involving Medpay and PIP. Some states prohibit direct subrogation against tortfeasors in Medpay cases. Others allow, in certain circumstances, an insurer to directly pursue the tortfeasor. Likewise, PIP subrogation laws can differ drastically by state.
Case Studies on Subrogation Law in Recovering Loss via Medpay and PIP
Sullivan, a subrogation-focused attorney licensed in dozens of state and federal jurisdictions, brushes on some state-specific Medpay and PIP subrogation laws:
- In Arizona, there is a $5000 threshold to the right of an insurer to subrogate.
- Kentucky requires subrogation suits begin with arbitration.
- Massachusetts, via Statute 34M, ensures the right of the insurer to pursue the tortfeasor or their carrier directly.
- In Indiana, an insurer can pursue a tortfeasor, but isn’t allowed to have an independent subrogation suit if their insured is pursuing the tortfeasor.
Effective Subrogation Management in Injury Claims from Vehicle Accidents
Even in cases of states that bar the insurer from pursuing subrogation against the at fault party in Medpay and PIP cases, you may still have the Right to Reimbursement. If you are seeking reimbursement from your insured’s settlement be aware that the Common Fund Doctrine and the Made Whole Doctrine may play a role in these types of subrogation cases. You also need to be aware of which state’s Medpay and PIP subrogation laws apply in a given lawsuit. Is it the state in which the insurance policy exists? Or is it the state in which the incident occurred? In all forms of insurance subrogation, understanding the nuances of the law is key to effective case management. This is especially true in this field of insurance subrogation, which is why working with attorneys who can deftly navigate these state-specific statutes is vital to maximizing recovery in motor vehicle injury cases.