Michigan auto insurance reform law goes into effect July 1, 2020

Michigan’s new auto insurance reform law goes into effect on July 1, 2020, allowing individuals to opt out of buying personal injury protection (PIP) as part of their auto insurance if they have Qualified Health Coverage (QHC).

Background

The new law will allow motorists to completely opt out of buying personal injury protection (PIP) as part of their auto insurance if their health insurance covers auto injuries. This means that motorists can select the amount of medical coverage they want when purchasing their auto insurance. This law was positioned as financial relief for Michigan drivers, who pay some of the highest insurance rates in the nation. This differs from current Michigan law, which provides motorists with unlimited PIP.

What do you need to know?

The new law does not change the way you’ll work with us. Coordination of benefits will remain the same for all plans, so you do not need to change the way you bill us.

What is Qualified Health Coverage?

An individual has QHC if their health insurance plan covers auto injuries. For Priority Health members, this depends on the plan type.

  • Commercial plans: Members with an individual or employer-sponsored plan that covers auto insurance and has an individual deductible of $6,000 or less, can opt out of PIP altogether.
  • Medicare: Members can opt out of PIP altogether.
  • Medicaid: Members can choose to purchase $50,000 or more in coverage.
  • All other drivers: Members can choose $250,000, $500,000 or unlimited coverage.

Information for your Priority Health patients

Visit our auto insurance reform page to review information for our members.