Personal Injury Protection Coverage & Qualified Health Letters

Photo of open road with pine trees. Personal Injury Protection & Qualified Health Plan Letters

A Change that Introduces Qualified Health Plan Letters

As you know, changes to the Michigan No-Fault law became effective early July 2020. These changes have brought additional requests from auto insurance carriers regarding Personal Injury Protection (PIP).

Since Mason-McBride is your trusted advisor, we wanted to make our clients aware of this situation that could potentially affect you.


In the Past:  Coordination of Benefits Letter

A Coordination of Benefits letter was requested when a client had the Unlimited Personal Injury Protection (PIP) benefit, and the client wanted their auto insurance to pay on a secondary basis. This letter was a mechanism to prove that the health insurance carrier would agree to work with the auto insurance carrier to pay for auto accident-related injuries. This simple letter was required only if the client wanted to auto insurance to pay on a secondary basis.


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:

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

Unfortunately, if the above three items are not included in this letter from your medical insurance carrier, the auto insurance companies will reject the request to remove the Personal Injury Protection coverage from the auto policy.

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?

If you have any questions about your coverage, or to review coverage options, please contact us. For helpful tips on other popular topics, check out our articles on Cyber Insurance, Commercial Crime Insurance, and Ransomware Developments. As always, we are here to help you, your employees, and your business with all your insurance needs — from commercial insurance to group benefits to personal insurance. Thank you for allowing Mason-McBride to serve you!


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