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Michigan PIP Revisited

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Michigan PIP Revisited

We are now over 3 months into the new No-Fault Reform changes that took place for auto insurance here in the state of Michigan in an effort to reduce auto insurance premium for the majority of its citizens.

One of the changes impacts medical coverage for auto accidents. People are now given options rather than continue with the unlimited medical coverage as was previously required. The options are as follows:

  • Unlimited Medical = the auto insurance carrier pays for all medical bills relating to auto accident injuries for as long as necessary. No coverage caps or gaps.
  • $500,000 Medical = the auto insurance carrier pays for all medical bills relating to auto accident injuries up to $500,000. After this limit has been reached, the client will rely on their personal Qualifying Health Plan or Qualifying Medicare Plan. There are annual deductibles/co-pays/out-of-pockets/potential coverage caps or gaps.
  • $250,000 Medical = the auto insurance carrier pays for all medical bills relating to auto accident injuries up to $250,000. After this limit has been reached, the client will rely on their personal Qualifying Health Plan or Qualifying Medicare Plan. There are annual deductibles/co-pays/out-of-pockets/potential coverage caps or gaps.
  • $50,000 Medical = the auto insurance carrier pays for all medical bills relating to auto accident injuries up to $50,000. After this limit has been reached, the client will rely on their Qualifying Medicaid Health Plan or Qualifying Medicare Plan. There are annual deductibles/co-pays/out-of-pockets/potential coverage caps or gaps.
  • No Medical = the client will rely on their personal Qualifying Health Plan or Qualifying Medicare Plan alone. There are annual deductibles/co-pays/out-of-pockets/potential coverage caps or gaps.

For those with Medicare/Medicaid that are considering a dollar amount or opting out of coverage altogether need to be aware of Medicaid/Medicare’s reimbursement clause. According to their website, they will require reimbursement for medical bills if a monetary settlement is reached in an auto accident.

So, if you receive a loss settlement for your auto accident of $100,000 Medicaid/Medicare will require reimbursement for any medical bills paid as the result of the accident. In most cases where a loss settlement is reached, ALL the money from the settlement would have to be turned over to Medicaid/Medicare.

Our agency highly recommends retaining unlimited medical coverage to avoid any hassles for coverage or payment for services as the result of an auto accident injury.

Contact Us!

At M. Vander Plow Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 616-396-1497 or send us a note at mvpinsagency@gmail.com. We want to help you meet your goals, and make sure what’s important to you is protected!

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