Michigan Seniors can Opt-out of Michigan Personal Injury Protection Benefits
After July 1, 2020, Michigan Medicare enrollees who renew or purchase a new no-fault automobile insurance policy can choose to “opt-out” of Personal Protection Insurance (PIP) medical benefits. To qualify:
- Seniors must have Medicare Parts A and B.
- Spouses of Enrollees or any relative residents in the same household need their health coverage or automobile insurance coverage that provides PIP medical benefits.
What will Medicare Pay if you Opt-out of Michigan Personal Injury Protection
Medicare will pay for all approved services to enrollees that have an injury from an automobile accident and have no other available coverage.
Medicare will not pay:
- The enrollee will remain responsible for coinsurances, copayments, deductibles.
- Medicare does not cover services, such as transportation to and from medical appointments, vehicle modifications, case management services, residential treatment programs, long-term and custodial care, and replacement services.
Michigan Personal Injury Protection Choices
Medicare enrollees can elect to keep the unlimited coverages on their auto policies. If seniors keep unlimited medical coverages, the auto insurer will pay for the services that Medicare would not cover. Seniors can purchase lower than unlimited levels of PIP medical coverage: $250,000 or $500,000 per person per accident of coverage.
What happens if a Senior Chooses Lower Limits
Seniors that choose lower limits and exhaust their PIP Medical limits in auto accidents and have no other medical coverage. Medicare will pay for Medicare-covered services, but the enrollee will remain responsible for coinsurances, copayments, and deductibles, and for any services that it does not cover.
Michigan Auto Insurance Savings
Michigan Auto reform states that depending on your Personal Injury choice, you should see the following reductions.
- $500,000 PIP coverage option: 20% reduction
- $250,000 PIP coverage option: 35% reduction
- Opt-out of PIP coverage: Individuals with Medicare or qualified health insurance will receive a 100% reduction in portions of PIP. The MCCA reduces the fee to $0 for the 2020 year.
Finally, for more information on the changes that will affect Michigan auto policies, go to our update on Michigan Auto Insurance Reform.