Kemper Insurance Pharmacy Lien Strategy for Personal Injury Attorneys

James Wong — Founder & Pharmacist, LienScripts | August 18, 2024 | 6 min read

Kemper Insurance operates in non-standard and preferred auto markets, insuring higher-risk drivers often involved in PI claims. Understanding Kemper's claims behavior, MedPay practices, and how pharmacy liens work alongside Kemper coverage helps attorneys manage these cases efficiently.

This post is for informational purposes only and does not constitute legal advice.

Kemper Insurance is a multi-line insurer with a significant presence in the non-standard auto insurance market, insuring higher-risk drivers who are frequently involved in personal injury claims. Pharmacy liens for medications dispensed on credit to injured plaintiffs operate independently of Kemper's liability payments or MedPay reimbursement and are resolved separately at settlement.

• Kemper Insurance specializes in non-standard auto, preferred auto, and specialty personal lines markets
• Non-standard auto policyholders are statistically more likely to be involved in PI-generating accidents
• Kemper's MedPay coverage, when available, creates a reimbursement interest separate from pharmacy liens
• LienScripts pharmacy liens cover medications not paid by Kemper or any other insurer
• According to James Wong, PharmD, founder of LienScripts, early pharmacy lien enrollment prevents treatment gaps while Kemper's claims process proceeds

Kemper Insurance in the PI Landscape

Kemper Insurance Group operates through several subsidiaries, including Kemper Auto (non-standard), Kemper Preferred, and specialty lines. The non-standard auto segment is Kemper's core business and insures drivers with limited driving history, prior claims, or other factors that make them ineligible for standard market coverage.

For PI attorneys, this means Kemper appears frequently as the liability carrier for at-fault drivers. Non-standard auto policies often carry lower limits — $15,000/$30,000 bodily injury limits are common — which means Kemper cases frequently involve policy limits demands and potential underinsured motorist claims against the plaintiff's own carrier.

[!KEY] Kemper non-standard auto policies frequently carry minimum or near-minimum liability limits. Identify the Kemper policy limits early and evaluate whether a UIM claim against your client's own carrier is necessary to fully cover damages, including pharmacy lien costs.

Kemper MedPay and Reimbursement

Not all Kemper policies include Medical Payments (MedPay) coverage. Non-standard auto policies in particular often omit MedPay or include only minimal limits ($1,000 to $5,000).

When Kemper MedPay is available:

• Kemper pays covered medical expenses resulting from the accident regardless of fault.
• Kemper asserts a reimbursement right against any third-party liability recovery.
• California's made-whole doctrine and common fund principles apply to reduce Kemper's reimbursement demand.

When Kemper MedPay is not available (or is exhausted quickly due to low limits), the pharmacy lien becomes even more critical — it ensures the client continues receiving necessary medications without waiting for the liability claim to resolve.

[!TIP] Check whether your client's own auto policy has MedPay or PIP coverage, even if Kemper is the at-fault carrier. Stacking MedPay with a pharmacy lien from LienScripts can bridge the full treatment period.

Using Pharmacy Lien Documentation Against Kemper

When Kemper is the liability carrier, your demand package should include comprehensive documentation of all medical and pharmaceutical costs. LienScripts generates a MERIT (Medication Evaluation & Rationale for Injury Treatment) report for every case, providing pharmacist-signed documentation for demand packages.

Kemper adjusters evaluate the total documented specials when determining settlement value. Pharmacy lien costs documented through MERIT reports carry the same evidentiary weight as other billed medical expenses. Including them increases the demonstrated damages figure, which supports a higher settlement demand — important when Kemper's policy limits may already be in play.

[!KEY] In low-policy-limits Kemper cases, thorough documentation of all specials including pharmacy lien costs strengthens your demand for the full policy limits and supports the UIM claim against your client's carrier for the excess.

Kemper Preferred and Specialty Markets

Kemper Preferred insures standard-market drivers with conventional auto policies. These policies typically carry higher limits and more robust MedPay coverage than non-standard policies. The subrogation and reimbursement principles are the same, but the claims process is generally smoother and the available coverage more substantial.

Kemper also writes specialty personal lines including homeowners and renters insurance. In premises liability cases where the property owner has Kemper coverage, the same principles apply: pharmacy lien costs are independent of Kemper's liability payment, and MERIT documentation supports the damages figure in your demand.

Practical Steps for Attorneys

1. Identify the Kemper product line. Non-standard auto, preferred auto, or specialty lines — this determines likely policy limits and MedPay availability.
2. Confirm policy limits and MedPay coverage early. Request the declarations page from Kemper within the first 30 days.
3. Enroll the client in a pharmacy lien program immediately. As Amar Lunagaria, PharmD, LienScripts' Chief Pharmacist explains, early enrollment prevents treatment gaps that weaken both health outcomes and case value.
4. Include LienScripts documentation in your demand. The MERIT report and lien summary support the total damages calculation.
5. Resolve Kemper's MedPay reimbursement and the pharmacy lien as separate tracks. They are independent obligations with different contacts and processes.

Key Takeaway

Kemper Insurance cases — particularly in the non-standard auto segment — frequently involve low policy limits and limited or absent MedPay. Pharmacy liens from LienScripts ensure medication access regardless of Kemper's coverage limits and are resolved independently at settlement. Thorough documentation through MERIT reports strengthens both the liability demand against Kemper and any supplemental UIM claim.

Related Resources

• Pharmacy Services for Personal Injury Clients: How It Works
• Underinsured Motorist Pharmacy Lien Strategy