Man behind the wheel of a car

What to Know About Changes to Michigan’s Car Insurance Law

Michigan’s new auto no-fault insurance law went into effect July 1, 2020. Under the new law, you’ll no longer be required to purchase unlimited personal injury protection (or PIP) if you have a certain level of health insurance coverage.

Even though this law has to do with your auto insurance, a lot of people have questions about what it means for your health insurance.

Personal Injury Protection Considerations

It’s important to know that in order to opt-out of PIP coverage under the new Michigan law, you must have health insurance that is considered qualified health coverage. Your coverage is considered qualified if it:

  • Does not exclude or limit coverage for injuries related to motor vehicle accident and has an annual deductible of $6,000 or less per individual
  • Or if your coverage is Medicare Parts A & B

When making a decision, keep in mind that PIP has coverage that goes beyond traditional health insurance. PIP coverage can include items like attendant care, housing modifications and lost wages.

What information do I need from Blue Cross?

In order to understand if you’ll need information from Blue Cross to make an auto coverage decision, you’ll want to first talk to your auto insurer.

Depending the level of PIP you choose, your auto insurer may request a letter stating whether you have qualified health coverage, or QHC. This letter shows whether your health insurance plan meets the requirements to be considered QHC under the new no-fault auto law.

If you’re asked to provide your auto insurer with a QHC letter, you will either need to contact your health plan (like Blue Cross) or your employer to request the letter.

Your auto insurer may also ask for a letter about how your health coverage coordinates with your auto insurance for auto accident medical claims (i.e., which coverage pays primary in an auto accident).

To obtain a coordination of benefits letter, call the number on the back of your Enrollee ID card.

You have options

You can keep your unlimited PIP coverage. There are different levels of PIP coverage that you can choose from. You can also opt-out if you qualify for that provision.

Please keep in mind that PIP coverage pays for some items that health insurance doesn’t, such as attendant care, lost wages and vehicle or housing modifications.

Contact your auto insurance agent with questions and to learn more about your options.

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