Short Answer

Yes—North Carolina allows attorneys to charge a reasonable fee for helping you recover medical payments (MedPay) benefits under your own auto policy, as long as you agree in writing. Many firms use a modest flat fee for MedPay because these claims are usually straightforward; charging a percentage is not prohibited but must still be reasonable for the work performed and clearly disclosed in the fee agreement.

Understanding the Problem

In North Carolina personal injury cases, can your lawyer charge a fee on MedPay benefits you collect from your own auto insurer? You’re reviewing a fee agreement that sets 33 1/3% for third-party recovery, 40% if litigation is required, and a separate $300 flat fee for MedPay. You want to know whether a lawyer may take a percentage—or any fee at all—on your MedPay claim and how that should be structured.

Apply the Law

Under North Carolina law, attorney fees must be reasonable and explained so you can give informed, written consent. MedPay is a first-party insurance benefit under your own policy, separate from your claim against the at-fault driver. There is no statute that bans charging a fee for handling MedPay; the focus is on reasonableness, clear scope, and avoiding confusion or double-charging. The usual forum for MedPay is your insurer’s claims department, not a court. Policy deadlines for notice and proof of loss can apply and may affect payment if missed.

Key Requirements

• Written scope and consent: The fee agreement should clearly separate third-party injury work from first-party MedPay tasks, with the fee type (flat or percentage) spelled out.
• Reasonableness of the fee: The fee must reflect the work, complexity, risk, and results. A percentage may be unreasonable if the insurer would have paid promptly with little attorney effort.
• No double-charging: Your lawyer should not charge a contingency on the same dollars twice (for example, counting MedPay in the third-party contingency and also charging a separate fee on MedPay).
• Trust handling and authorizations: If MedPay funds come to the law firm, they must be deposited in trust and disbursed only with your authorization and after resolving known liens/assignments.
• Liens and assignments differ: North Carolina medical provider liens attach to third-party injury recoveries (damages), not to MedPay benefits; however, providers may have assignments or your policy may have coordination terms that affect who gets paid.

What the Statutes Say

• N.C. Gen. Stat. § 44-49 (Medical provider liens on injury recoveries) - Creates provider liens on sums recovered as damages from a third party.
• N.C. Gen. Stat. § 44-50 (Enforcement; attorney fee priority; 50% cap) - Addresses enforcement and caps provider lien payments from a third-party recovery after attorney fees.

Analysis

Apply the Rule to the Facts: Your agreement separates third-party recovery from MedPay and uses a $300 flat fee for MedPay. That structure is common and typically reasonable if your lawyer gathers bills, submits proof of loss, follows up, and manages disbursement. A percentage fee on MedPay is not automatically improper, but it must be reasonable for the work involved and clearly disclosed. Your lawyer should not include MedPay in the third-party contingency calculation and then also charge the MedPay flat fee on the same dollars.

Process & Timing

1. Who files: You or your attorney. Where: Your auto insurer’s MedPay claims department in North Carolina. What: Submit the insurer’s claim form, itemized medical bills, related records, and proof of accident. When: As soon as bills are available; follow your policy’s notice and proof-of-loss deadlines.
2. The insurer reviews and may request more documentation. Many carriers issue MedPay payments within a few weeks of receiving complete proof, but timing varies by insurer and policy.
3. Payment is issued to you, your provider (if assigned), or your attorney’s trust account. The attorney disburses per your written authorization, deducting only the agreed MedPay fee and resolving any valid assignments.

Exceptions & Pitfalls

• Minimal-effort claims: If the insurer would have paid from basic documentation with little or no attorney work, a large percentage fee may be unreasonable—ask for a flat fee or reduced charge.
• Double counting: Make sure MedPay dollars are not included in the third-party contingency calculation if you are also paying a separate MedPay fee.
• Provider assignments: If you signed an assignment, your insurer may pay the provider directly; your lawyer should not take a fee from funds that never pass through your hands or the firm.
• Policy coordination: Some policies coordinate MedPay with other benefits; provide your lawyer the policy so disbursements follow contract terms.

Talk to a Personal Injury Attorney

If you're dealing with questions about attorney fees on MedPay and third-party recoveries after a car accident, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.