Personal Injury Protection Coverage & Qualified Health Letters

Michigan Auto Laws

A Change that Introduces Qualified Health Plan Letters

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

As your trusted advisor, the Team at Mason-McBride wants you to be aware of this situation and the potential effects.

 

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. 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 auto insurance to spend 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. Confirm that your specific health plan has a $6,000 or less deductible annually.

Unfortunately, suppose the above three items are not included in this letter from your medical insurance carrier. In that case, 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.

Injury Protection

Want to Learn More?

If you have any questions about Auto Insurance or review coverage options, please contact us.

The Team at Mason-McBride is happy to help!

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