What is the new law and what does it mean for you?

If you haven’t already heard, Michigan’s new auto insurance reform law goes into effect on July 1, 2020. With the new law, you can opt out of buying personal injury protection (PIP) as part of your auto insurance—but only if your health insurance policy covers auto injuries and has a deductible of $6,000 or less. If your health plan includes auto injuries, it’s considered qualified health coverage (QHC) and you can opt out of PIP.

How do I know if I have QHC?

Commercial and Individual members

In general, if you are under an employer-sponsored or Individual health plan that covers auto injuries and has an individual deductible of $6,000 or less, your health coverage qualifies and you can opt out of PIP. Self-funded employers retain the right to handle/exclude/coordinate coverage for auto injuries.

Medicare members

You can opt out of PIP if you are enrolled in Medicare Parts A and B (which your Priority Health Medicare Advantage plan includes) and your spouse or any relative who resides in your household also has qualified health coverage or auto insurance that includes PIP. Under the new law, you can also choose to purchase lower than unlimited PIP coverage in the amount of $500,000 or $250,000.

Medigap members

This health plan is not considered qualified health coverage. You can opt-out of PIP medical benefits if you are enrolled in Medicare Parts A and B, and your spouse or any relative who resides in your household also has qualified health coverage or auto insurance that includes PIP medical benefits. Contact Medicare at  800.633.4227 to request proof of coverage to share with your auto insurer or agent.

Medicaid members

Your health plan is not considered qualified health coverage and you cannot opt out of PIP as part of your auto insurance policy. If you have questions, contact the Michigan Department of Insurance and Financial Services (DIFS). The contact line for Auto No Fault inquiries is 833.ASK.DIFS or 833.275.3437.

Before you change your auto insurance policy, consider this.

Changing your auto insurance policy could potentially save you money. However, it could also be a costly change in the event of an auto accident. We recommend you weigh your options carefully before making the switch, and we’ve put together the following guidelines to help you decide what’s right for you.

Download a guide with information specific to your plan:

How do I waive my PIP?

If you decide to opt out of PIP, you must show your auto insurance agent proper documentation. Auto insurance agencies require a letter confirming your QHC.

To request your QHC confirmation letter, call us at the number listed on the back of your member ID card. If you don’t want to change your auto coverage, documentation isn’t required.

Want more information?

If you’d like to learn more about the new auto policy law, visit michigan.gov or call Michigan’s dedicated hotline at 833.ASK.DIFS or 833.275.3437 (TYY 711). You may also email the state directly at autoinsurance@michigan.gov.