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Who Pays If I Have No Fault Insurance and Medicaid or Medicare?

If you have been in a car accident, it can sure feel like there are a lot of players: doctors, medical professionals, lawyers, insurance companies. When Medicaid or Medicare comes into the picture it can make the process even more confusing. So who pays your medical expenses, your no fault insurance or the state?

Michigan no-fault insurance covers all reasonable medical expenses related to injuries from an auto accident. But a lot of car insurance providers offer reduced cost insurance policies to clients who agree to use their health insurance first and their auto insurance second. This is called coordinated insurance.

But that option isn’t available under Medicaid and Medicare . In fact, the federal Medicare statute explicitly requires Medicare to be a secondary payer. If for some reason Medicare pays for medical expenses that could have been covered by any other insurance, including no-fault, the state has a “right of subrugation.” That means that either the insurance company or the injured person will have to pay Medicare back at the end of the day.

Medicaid works almost the same way. A person is not eligible for Medicaid payments for an injury if those costs are covered by no fault insurance. That doesn’t mean a person with no fault insurance can’t also apply for Medicaid. It just means that the car insurance will pay for specific injuries related to an auto accident.

To sum up, if you have no fault insurance and some kind of health insurance here is what you can expect:

  • For Private Health Insurance: Your health insurance pays first and your no-fault insurance pays the difference (including deductibles and coinsurance).
  • For Medicare: Your no-fault insurance pays first, Medicare is a secondary payer. Medicare can be paid back for anything it should not have paid.
  • For Medicaid: Your no-fault insurance pays. You are ineligible for Medicaid for those injuries that are covered by your car insurance.

It can be nerve wracking to face all those medical expenses after a motor vehicle accident. But if you have no-fault insurance, health insurance, Medicaid, or Medicare you should rest assured that you can be covered. To make sure the bills get paid, contact David Christensen and his team at Christensen Law in Southfield, Michigan. They will sit down with you and make sure you understand how your insurance works and will make sure the bills get paid. If you or someone you know are facing a pile of medical bills, contact Christensen Law for a free consultation today.