Many insurers who are providing med pay coverage for automobile accident victims are now seeking reimbursement or subrogation out of the bodily injury settlements.  In many of those cases, no such right of reimbursement exists.  In the remainder of cases, the med pay insurer will be required to take a substantial reduction in what it is seeking. 

One insidious practice I am seeing is where the med pay carrier and the BI carrier are the same carrier, and the BI carrier is simply forwarding the full amount of the med pay lien to itself.  This, and other attempts by the med pay carriers to obtain full reimbursement are not only a breach of contract and a breach of fiduciary duty on behalf of the med pay carrier, but also constitute bad faith on behalf of the BI carrier.  

In my practice, I am filing dec actions against the med pay insurer when they refuse to waive or, when appropriate, significantly reduce their liens.  Fees and costs are payable under Section 627.428.