Insurance companies claim they want to help you save money. While the savings they suggest may sound ideal, the insurance company may be suggesting cutting corners on protections to “save” you money. One solution the insurance company may suggest is to elect your health insurance as PIP primary. If you have health insurance, it may seem like a good idea to select your health insurance as PIP primary, but in the event of an accident, you may be limiting your options in terms of healthcare.
By selecting your health insurance as PIP primary, you may be responsible for high co-pays and deductibles, which would be normally covered by your auto insurance. If you are involved in an accident and use auto insurance, you will be responsible for the copay and deductible amounts you selected when you signed up for auto insurance. Typically, auto insurance copays and deductibles are significantly lower than your health insurance co-pay and deductible.
Having your health insurance as PIP primary, may also limit the facilities you are allowed to treat with as you will have to go to places in-network with your health insurance. You are often forced to go to places in-network or you will be charged penalties or the service may not be covered.
If your health insurance falls under an ERISA plan, it may ultimately cost you more if you intend to sue the negligent parties’ insurance company. Under an ERISA plan, your health insurance can seek reimbursement in the form of a lien of any settlement you receive for the medical expenses the insurance company pays your health care providers. In other words, you will need to pay the insurance company any money they had paid on your behalf to the medical facility.
Involved in an accident? Contact Joseph M. Ghabour & Associates, LLC to discuss your case.