Michigan Auto Insurance Reform

Michigan Auto Insurance Update for Employers

Beginning July 1, Michigan No-Fault Insurance will change to allow individuals to purchase lower levels of Personal Injury Protection (PIP) with three options available to all individuals.  These options include:

  • Unlimited Per Occurrence
  • $500,000 Per Occurrence
  • $250,000 Per Occurrence

There are additional Personal Injury Protection (PIP) options available to individuals with qualified health coverage, Medicare or Medicaid:

  • $50,000 Per Occurrence – Medicaid enrolled individuals only
  • Opt-out – Medicare enrolled individuals only

A QHP under the new State of Michigan guidelines includes Medicare and other coverage (including group health plan coverage) that does not have exclusions nor limitations for motor accidents that has a deductible requirement of $6,000 or less.

Self-insured health plans will have the option to pay primary, secondary or exclude auto accident related benefits.

Please understand, employees’ health insurance coverage is specific to medical services. The health plan does not include coverage for other costly services such as:

  • All medical benefits not included in the health plan
  • Custodial care
  • Nursing services
  • Transportation and medical mileage
  • Prescription costs
  • Medical equipment
  • Home modifications
  • Vehicle modifications
  • Long-term comprehensive rehabilitation
  • Case management
  • Wage losses
  • Attendant care
  • And more

If an employee selects a lower benefit level than the unlimited option, they may experience high out of pocket expenses. Further, when employees experience any change to medical coverage, they will want to notify their auto insurance agent of changes. Employees should consult their auto insurance provider for assistance in choosing the best plan.

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