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Last year, the Michigan legislature overhauled the state’s auto insurance law, removing the requirement for lifetime medical benefits for injuries sustained in auto accidents. Michigan residents have suffered from the highest auto insurance premiums in the country and the disproportionally expensive health care costs for those accidents victims was cited a major driver of premiums. Michigan’s new auto insurance law allows for consumers to choose levels of PIP, or personal injury protection, to pay for the medical costs associated with an accident. One aspect is that those covered by Medicare or Medicaid would have the option to select a very minimal PIP coverage. The law is scheduled to go into effect in July and there still remains many questions about how the new auto insurance requirements coordinate with an individuals health insurance.
The Department of Insurance and Financial Services has released some guidance and forms related to the new law. Its unclear if auto insurance carriers will be required to have plans that will allow for coordination of health benefits with an individuals private health insurance. Ultimately, it may be up to the consumer to confirm if their auto insurance policy will coordinate with their health benefit and if their health insurance policy will allow for it. This could get extremely complicated for individuals purchasing on the exchange, those enrolled in ERISA plans, or more complex situations for families with multiple forms of health insurance coverage.
There may be changes to the law before the July implementation date. For a brief FAQ on Michigan’s new PIP requirements follow this link. https://www.michigan.gov/documents/dleg/ip_228_231063_7.pdf