What Are the Drawbacks of Medical Payments Insurance?

Medical payments insurance (MPI) is a type of health insurance that helps pay for medical expenses incurred as a result of an accident, regardless of who is at fault. MPI policies typically have low premiums and high deductibles, and they cover a wide range of medical expenses, including doctor visits, emergency room care, and ambulance transportation.

While MPI can be a valuable form of insurance, it also has several drawbacks. These drawbacks include:

I. Lack Of Comprehensive Coverage

MPI policies only cover certain medical expenses. They do not cover major medical expenses, such as hospitalization, surgery, or prescription drugs. This means that if you have a serious accident or illness, you could be left with large medical bills that MPI will not cover.

• Examples of excluded expenses:
• Hospitalization
• Surgery
• Prescription drugs

II. Limited Coverage Amounts

MPI policies have low coverage limits. These limits are often insufficient to cover significant medical expenses. For example, a policy with a $5,000 coverage limit will not be enough to cover the cost of a hospital stay or a major surgery.

• Examples of low coverage limits:
• $5,000
• $10,000
• $25,000

III. High Deductibles

MPI policies often have high deductibles. This means that you must pay a certain amount out of pocket before your insurance coverage begins. Deductibles can range from $500 to $2,500 or more. If you have a high deductible, you could be responsible for paying a large portion of your medical bills before your insurance kicks in.

• Examples of high deductibles:
• $500
• $1,000
• $2,500

IV. Limited Provider Networks

MPI policies may have limited provider networks. This means that you may have to pay more for out-of-network care. Out-of-network care is care that is provided by a doctor or hospital that is not in your insurance company's network. The cost of out-of-network care can be significantly higher than the cost of in-network care.

• Examples of limited provider networks:
• HMOs
• PPOs
• EPOs

V. Lack Of Portability

MPI policies are not portable between states. This means that if you move to a new state, your MPI coverage may not be valid. You may have to purchase a new MPI policy in your new state.

• Examples of portability issues:
• Moving to a new state
• Traveling for business or pleasure

VI. Conclusion

MPI can be a valuable form of insurance, but it also has several drawbacks. These drawbacks include a lack of comprehensive coverage, limited coverage amounts, high deductibles, limited provider networks, and a lack of portability. If you are considering purchasing MPI, you should carefully weigh the benefits and drawbacks of this type of insurance before making a decision.

You may want to consider other health insurance options, such as a comprehensive health insurance policy or a major medical insurance policy. These types of policies provide more comprehensive coverage and higher coverage limits than MPI policies.