As an Attorney who has specialized in Personal Injury Law for the past 27 years in Los Angeles I’ve interviewed thousands of people who have been injured in motor vehicle accidents. It never ceases to amaze me just how many of these people either do not carry any uninsured/underinsured motorist coverage, or simply don’t carry enough.

Let’s first start with the distinction between uninsured and underinsured motorist coverage. Uninsured motorist coverage is insurance that you purchase as part of your automobile liability policy that covers the occupants of your vehicle in the event that the negligent party who caused the accident did not carry any coverage. In practical terms, your uninsured motorist carrier steps into the shoes of the uninsured person who caused the accident, and becomes his/her coverage for the purposes of the claim.

A common concern that I hear from clients when discussing their pursuit of an uninsured motorist claim is “I don’t want to make a claim against my insurance company. They will raise my premiums!”  This is absolutely 100% false. The “UM” Claim is only viable if the uninsured party is found to be “at fault”, which means that any payment to the insured by their UM Carrier is an admission that the insured was NOT at fault, and therefore not at risk for having their premiums raised. A sigh of relief almost always follows this explanation.

Underinsured Motorist Coverage is that coverage which “kicks in” after the negligent party’s insurance carrier has tendered it’s policy limits which are inadequate to compensate the insured for his/her injuries. The UM Limits though must exceed those of the defendants policy limits in order for coverage to apply. Here is an example of how this works:

Bob is insured with State Farm and has UM limits of $100,000.00. He is rear ended in a terrible accident with Joe who is insured with AAA. Joe’s liability limits are only $15,000.00. Bob’s medical bills alone are $20,000.00. He also has thousands of dollars in lost earnings. In this case it is likely that AAA will offer to pay Joe’s policy limits of $15,000.00 to settle the case on Joe’s behalf. If Bob accepts that offer he can then make a claim for Underinsured Motorist Benefits with State Farm for up to $85,000.00 ($100,000.00 minus $15,000.00 received from State Farm).

Based on the above-referenced example you can see how important it is to have sufficient UM Coverage. One day in the hospital can start at $10,000.00. I always tell my clients to purchase as much UM Coverage as they can afford because this coverage is essential. I am amazed by how many insurance policies I see where there is either no UM Coverage or coverage that is substantially less than the liability coverage. I always say the same thing to these people: “Do you realize that you are insuring people you don’t know and don’t care about for significantly more (sometimes as much as $100,000.00 more) than you and your loved ones who are traveling in your car. I always get the same response: “I’m going to call my agent as soon as I leave your office and increase my coverage”.

UM Coverage also protects you and your family members when you or they are not even in your car, because it applies whenever these individuals are involved in any “Motor Vehicle Accident”. This includes situations where you may be a passenger in someone else’s car and there is not enough insurance to cover your injuries. It will insure you, or any family member, if you or they were hit by a car as a pedestrian, or riding a bike, or sitting in an outdoor cafe and a drunk driver crashes into your table. It acts like a safety net for you and your family in ways you probably never imagined. If your injury was the result of a motor vehicle accident, then your UM Coverage will be available if needed.

California Law requires that your Insurance Company offer you UM Coverage with limits equal to the limits of liability for bodily injury in the underlying policy. See California Insurance Code 11580.2 (a). It is not mandatory that you purchase it, but if you don’t, the Insurance Company is required to have you sign a declaration declining such coverage. If they fail to do that, and you are involved in an accident with an uninsured driver, your Insurance Company will be required to provide you with up to $30, 000.00 per person and $60,000.00 per accident, depending on the liability coverage set forth in your policy. See Enter. Ins. Co. vs Mulleague (1987) 196 Cal App. 3d 528, 241 Cal. Rptr. 846.

Another reason UM Coverage is so essential is the fact that accidents involving uninsured drivers are usually more serious. It is more likely that an uninsured driver will be driving without a license, driving while drunk, driving at a high rate of speed, etc…  If you are involved in one of those collisions, and do not have adequate UM Coverage, you may be out of pocket huge sums of money in medical expenses and lost earnings.

It is my hope that everyone reading this article review their insurance policy immediately and increase their UM Coverage by as much as they can afford. You will be surprised at how little the cost of the increase will be and it will supply you with a peace of mind that you and your family deserve.

The issue of prescription drug samples is one that is hotly debated. Some questions whether giving out samples to lower income patients is helping them by providing them with the medication they need or if it’s hurting them by giving them a sample of a prescription they can not afford in the long term. Here are some resources on the subject to help you decide what you think.

Dr. Wayne S. Strouse wrote a letter to the editor in response to a study that appeared in the Journal of the American Board of Family Medicine claiming that free drug samples are actually hurting uninsured patients. Strouse disagrees and points out that many of his Medicare and uninsured patients can barely afford to pay co-pays, let alone pay for a prescription. He also criticizes the study for comparing “patients [who are insured or on Medicare] to patients who have insurance (or with money)” saying that it “is comparing apples with oranges.” To read Dr. Strouse’s letter, go to http://www.jabfm.org/cgi/content/full/16/1/86-a.

The Rochester Democrat and Chronicle published an article by guest essayist Benjamin Cohen on the topic of free drug samples. Cohen, who is obviously in favor of the samples, lists the benefits of drug samples as relief for needy patients and education for doctors. He claims that pharmaceutical drug representatives are invaluable to physicians because they provide information about new drugs and advancements that many doctors do not have time to research. He also points out the benefit to lower income and elderly patients who cannot afford prescription drugs on a regular basis. By providing them with drug samples, doctors can ensure their patients are getting the help they need. To read Cohen’s article visit the Rochester Democrat and Chronicle online at http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=/20080620/OPINION02/806200344.

David E. Williams wrote an entry in his Health Business Blog on a new study that was published in the American Journal of Public Health, The study claims prescription drug samples are more often given to wealthy and insured Americans than low-income, uninsured patients. Williams responds with little surprise, stating that drug samples are more of a marketing tool by pharmaceutical companies and are not intended to solely help low-income patients. In fact, he writes, many free clinics don’t even accept drug samples because they know that their patients cannot afford the high-cost drugs long term. Since drug samples are used as a marketing tool, it would make sense that they are made available to insured patients who could then purchase them after trying them out, says Williams. The read this blog post visit http://www.healthbusinessblog.com/?p=1589.

The Delaware County Office of Service for the Aging (COSA) posted a fact sheet on a Medicare Prescription Drug Program, Part D, which took affect January 1, 2006. This federally subsidized drug program for seniors, available through private insurance companies, helps seniors with the cost of their prescription drugs by giving them coverage for a monthly premium of between $11 and $35 a month. This fact sheet describes the benefits and gives instructions on how to enroll in the program. The informational Web page also gives other suggestions on how to save money on drug costs including asking for drug samples from their doctor, buying medications in bulk and using generics when possible. To learn more about the program visit COSA’s Web site at http://www.delcosa.org/site/389/medicare_prescription_drug.aspx.

Ken Johnson, a Senior Vice President in the pharmaceutical division at Research and Manufacturers of America wrote a letter to the editor of the New York Times in response to an article that questions the value of the distribution of free drug samples to doctors for their patients. Johnson argues that many uninsured and low-income patients depend on free drug samples and by discontinuing them it would take away a valuable safety net for these patients. Read Johnson’s letter to the editor here: http://www.nytimes.com/2006/02/09/opinion/l09drug.html.

A North Carolina resident wrote an opinion article for the News & Record on a current tax law in the state that taxes physicians for free drug samples. The article asserts that current tax laws consider free drugs samples part of the physicians “office supplies,” therefore making it taxable. The author points out that many doctors and patients depend on the free samples for affordable treatment and if doctors cannot pay the taxes on the medication they would not be able to accept them. To read this full article visit the News & Record’s Web site at http://www.news-record.com/content/2008/07/15/article/free_drug_samples_beneficial.