Insurance
Home›Insurance›Liability Insurance›State Farm wins appeal over disputed medical payments…
State Farm wins appeal over disputed medical payments payout process
An Ohio appeals court upheld State Farm’s payment method for $5,000 in medical payments coverage, including a $190.07 check that was sent months after the lawsuit was filed.
An Ohio appeals court upheld a ruling for State Farm on July 28, 2026, in a dispute over how the insurer paid a car crash medical claim. The case stemmed from a 2019 accident in Franklin County, Ohio, where a State Farm insured said the other driver caused the crash and left her with lasting injuries and property damage.
The policy included $5,000 in medical payments coverage, described as first party benefits that pay medical bills regardless of fault. But the dispute focused on who received the money, after Medical Mutual of Ohio had already paid the accident related bills and filed a subrogation request with State Farm through a third party vendor, The Rawlings Company (Rawlings).
Insurance Business reports that State Farm paid $4,809.03 of the MPC benefit directly to Rawlings in October 2020. The policyholder later argued the remaining $190.07 should have been paid to her and said State Farm stalled before the last check went out in May 2024, leading her to sue for breach of contract and bad faith.
After a bench trial, the trial court found State Farm did not breach the policy and said the delay was reasonable, citing that the driver did not provide her medical records until after she sued during discovery. The appeals court agreed there was no remaining real dispute and also rejected the policyholder’s attempt to block State Farm from retaining or using her medical information beyond what the policy allowed.