Personal Injury Protection & Qualified Health Letters

As you may be aware, changes to the Michigan No-Fault law came into effect in July 2020, which have led to additional requests from auto insurance carriers regarding Personal Injury Protection (PIP).

These changes may have significant implications for Michigan drivers, and as your trusted advisor, we want you to be aware of the situation and its potential effects.

In the Past: Coordination of Benefits Letter

In the past, a Coordination of Benefits letter was required when a client had the Unlimited Personal Injury Protection (PIP) benefit. This letter was used to prove that the health insurance carrier would cooperate with the auto insurance carrier to pay for auto accident-related injuries on a secondary basis.

Under the new Michigan regulations, a Qualified Health Plan letter is required ONLY if a client chooses the Personal Injury Protection (PIP) Opt-Out option. This option allows drivers to opt-out of the Unlimited PIP coverage and choose lower levels of PIP coverage or none at all.

What’s New: Qualified Health Plan Letter

NOTE: The Qualified Health Plan Letter is required ONLY if a client selects the Personal Injury Protection (PIP) Opt-Out option.

If you choose the Opt-Out PIP option, you MUST obtain a letter from your medical insurance carrier that includes the following:

  • The term “Qualified Health Plan.”
  • Identify — by full name — all plan enrollees in the household
  • Confirm that your specific health plan has a $6,000 or less deductible annually.

If these three items are not included in the letter from your medical insurance carrier, auto insurance companies will reject the request to remove the Personal Injury Protection coverage from the auto policy. It is essential to note that this letter is only necessary if you choose to opt-out of PIP coverage.

Additionally, visit our Michigan No-Fault Auto Insurance Changes 2020 page for everything you need to know to be well-informed about Personal Injury Protection and other no-fault changes.

See more of our Issue Alerts here.

Want to Learn More?

At Mason-McBride, we understand that navigating the changes to Michigan’s No-Fault law can be challenging. Our team is dedicated to providing you with the guidance you need to make informed decisions about your insurance coverage.

If you have any questions about your insurance coverage or the changes to Michigan’s No-Fault law, please do not hesitate to contact us. We are here to help and ensure that you have the right coverage to protect you and your loved ones in the event of an accident.

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