Monday, September 26, 2022

Michigan’s New No-fault Insurance Law

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Medicaid And Michigans New No

Big changes coming to Michigan√Ęs No-Fault auto insurance law

Michigan Medicaid is better situated to understand its home states No-Fault law. As a result, Medicaid Lien Resolution has been simpler than that for Medicare. The Michigan Department of Health and Human Services has generally opened just one file for its Medicaid liens. It will likely continue to do the same however, much like Medicare, it will want to be paid from any and all settlements.

MDHHS will argue that even if No-Fault is not exhausted, it must be paid from a BI case because there is no guarantee the remaining No-Fault will be paid to a plaintiff or MDHHS. Whether this is the final process is yet to be seen.

How Is Bodily Injury Coverage Changing

Currently, Michigan drivers must have no-fault auto insurance that provides up to $20,000 in coverage for each person injured or killed in an accident, up to $40,000 in coverage for a single accident that results in multiple injuries or fatalities, and up to $10,000 in property damage coverage for accidents that occur out of state. The new law increases the minimum PIP coverage amounts and adds a rule:

  • As of July, Michigan drivers must carry auto insurance that provides up to $50,000 for a person injured or killed in an accident.
  • The new rule also requires carrying up to $100,000 in PIP coverage for a single accident resulting in multiple injuries or fatalities.
  • Valid Michigan no-fault auto insurance policies will also apply coverage to injured drivers and passengers to any accident that occurs in the United States or Canada.
  • Michigan drivers may also elect to purchase additional PIP coverage of $250,000 and $500,000 accident coverage, or $500,000 PIP coverage and $1,000,000 accident coverage, if desired.These changes aim to reduce the average cost of auto insurance in Michigan. Still, some drivers may see their coverage costs increase or may choose to enhance their existing coverage limits, which will, in turn, result in higher premiums.

Are The State Requirements Enough Car Insurance In Michigan

Probably not. Michigan has the most robust state minimum insurance requirements in the nation, which is part of the reason insurance rates are so high. But while the insurance requirements in Michigan are significant, drivers would still benefit from getting higher levels of liability insurance than are required by the state.

Even in a no-fault state, no matter how much insurance you have, you can still be held financially responsible in an at-fault accident. Drivers who can afford it should choose liability levels of 100/300/100 or more, to ensure that, if theyre responsible for an accident, their insurance will be enough to cover the costs and they wont owe anything out of pocket.

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Why Were Sharing Our Recommended Car Insurance Coverage

Choosing the right options for your policy is a very important decision which is why we are providing our recommended car insurance coverage options to ensure you are protected. We understand the temptation to choose a lower medical amount on your policy to try to save money. The danger is that if a driver selects any medical level other than unlimited, then he or she is essentially playing Russian Roulette and betting that if they are seriously injured in a future motor vehicle accident, that their medical bills will fall within the amount they purchased.

If you are choosing a lower coverage amount of $50,000, $250,000 or even $500,000 and suffer a very serious injury, such as a that requires surgery, a brain injury, or a , the money will likely be extinguished long before you make a recovery.

Private health insurance and and either have limitations on the scope or amount of treatment, or do not cover at all important and necessary medical care for many injuries. Any that are incurred over that medical level amount selected on your policy will be your responsibility, which poses a serious risk of wiping out personal savings and even forcing people to declare bankruptcy because of crushing medical debt. He or she will also have to find a way to continue paying for needed medical care which in the case of seriously or catastrophically injured victims could run into the hundreds of thousands or even millions of dollars.

How Can I Get A Qhc Letter

Michigan No

There are several ways you can request a QHC letter.

  • You can log in to your online member account to see if you have a QHC letter to download. Once logged in, navigate to the QHC letter in the Proof of Insurance section at the bottom of the page.
  • You can call the number on the back of your member ID card.
  • If you don’t see a QHC letter online or are unable to get one through calling the number on the back of your card, you can reach out to your employer to request the letter.

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Other Health Insurance And Michigans New No

Other Health Insurance is a diverse category. It includes commercial health plans, ERISA health plans, TriCare health, FEHBA, and more. These plans all play by different rules some use federal law to preempt state laws. For example, even where Michigans No-Fault act has specifically limited medical claims to a plaintiffs own insurance, the ERISA and FEHBA carriers have claimed nearly infinite rights to reimbursement.

The changes and new limitations to Michigans No-Fault law only strengthen those arguments. Attorneys needs to settle with liens in mind will apply to Bodily Injury cases just as much as PIP cases.

There Actually Is A Way To Help

It is bad enough that current Michiganders who suffer catastrophic auto accidents will never know the humane benefits we once offered such victims. But taking away care from those who were already injured is as cruel as stepping on a patients oxygen hose.

A lot of us thought a grandfathering clause was in the law, said John Prosser, the former vice president and partner of Health Partners, Inc. But then, just before 1 in the morning, it was taken out. And no one was given a chance to even read the thing through. They promised and promised the law would be vetted, and then they gave lawmakers an hour to vote on it.

Prossers company, a home health firm which employed over 500 people and took care of 90 catastrophic auto crash victims, had to close down last summer after 29 years in the business. Everyone was laid off. All the patients lost their care.

This is the collateral damage of the new auto no-fault law, which was celebrated by its supporters as giving us a few hundred bucks a year back on our car insurance.

The business leaders who pushed for this, the politicians who endorsed it, and the legislators who voted for it should be ashamed of themselves.

Ashamed because they let this thing be ramrodded through in the wee hours of the morning.

Ashamed because they didnt insist on reading it carefully.

Ashamed because they allowed it to come into being without insisting on a provision to keep previous victims at their same coverage.

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What Do I Need To Know About The Changes To Michigan’s No

Who is this for?

This is for Blue Cross Blue Shield of Michigan members who want details about Michigans new no-fault auto insurance law that goes into effect on July 1, 2020.

Are you looking for the form that coordinates your auto and medical insurance after an accident? You can find what youll need on our subrogation page.

Did Michigan Get Rid Of No

Consequences of Michigan’s no-fault reform

Today, Michigan drivers are required by law to have a no-fault automobile insurance policy that includes Personal Injury Protection benefits. … On July 2, 2020, many changes to the existing no-fault auto insurance law will take effect, including giving Michigan drivers a choice in their level of PIP coverage.

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What Is The New Car Insurance Law In Michigan

Effective July 1, 2020, the state of Michigan passed sweeping changes to car insurance requirements for drivers in the state, including:

  • PIP changes: Previously, drivers in Michigan were required to purchase unlimited PIP coverage. Since the law changed in 2020, drivers are now allowed to choose the level of coverage they feel is most appropriate for their needs. Additionally, insurance companies are required to lower premiums for PIP coverage through 2028. Medical providers are also required to adjust fees for services based on the states new fee schedule.

  • Rating factor changes: Car insurance companies are now prohibited from using gender, marital status, home ownership status, , educational level, occupation, and ZIP codes to set rates in Michigan. This is intended to make pricing more equal, and keep insurance companies focused on how you drive rather than who you are.

  • Consumer protection changes: The state created a new fraud investigation unit to work specifically on insurance-related cases. The law also requires new auto insurance rates to be approved by the state and increases fines for insurance companies for some violations.

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Does My Pip Medical Coverage Level Affect Attendant Care Benefits

It may. For those who opted to retain their lifetime unlimited PIP medical coverage, the only limits on attendant care will be the new 56-hour cap for services provided by a family member or personal acquaintance.

However, for individuals covered by No-Fault policies with one of the lesser PIP medical coverage options , attendant care will be reimbursed according to the limits of the policy.

For example, suppose a person who has a No-Fault policy with maximum PIP medical benefits of $250,000 is severely injured in a car accident. If full-time attendant care is needed for several months or years, the cost will eventually exceed $250,000. Consequently, the individual will accrue devastating medical bills, for attendant care and other necessary treatment and services.

In these unfortunate instances, the victim may be able to seek recourse by filing suit against the party responsible for the accident. However, because these lawsuits are extremely complicated, its important to contact a knowledgeableauto accident attorney as soon as possible if you are injured in a crash.

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Making Smart Choices: A Summary Guide To The New Auto No

As Michigan consumers face many new options and decisions theyve never had to make before regarding no-fault and liability coverages, our attorneys created Making Smart Choices: A Summary Guide to the New Auto No-Fault Law to help you make informed decisions. This free guide walks you through your new options, including PIP coverage levels, the need for increased liability coverage, umbrella policies, and more, so you can best protect yourself and your family.

The Impact On Consumers

New Michigan No

Consumers should talk to their insurance agent or carrier and ask questions. Policyholders will be required to fill out a six-page form that isnt expected to be user-friendly. And if you dont make any election, your coverage defaults to unlimited.

Consumers also need to understand their healthcare coverage well enough to know whats covered in the event of an auto accident and what isnt. These details will impact the decision about the level of PIP coverage to elect. When reviewing your healthcare coverage, its important to understand that coverage of medical expenses by your healthcare plan related to an auto accident will not be as comprehensive as the medical expense coverage in your auto policy. In other words, in most cases, your auto policy will provide the most comprehensive coverage. Some healthcare plans default to your auto policy first, and some exclude medical expenses related to injuries related to an auto accident altogether these, among many others, are important factors to understand and weigh.

While there may be potential cost savings, there are risks associated with the lower costs. By selecting anything less than full coverage, consumers up their financial risk in the event of a serious auto accident. If a policyholder were to sustain an injury and be unable to work, they could also potentially lose their current employer-provided healthcare coverage.

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Liability Insurance Requirements In Michigan

Liability coverage is the portion of your car insurance policy that pays for damage you cause to other drivers in an at-fault accident. Its divided into bodily injury liability, which covers the other drivers injuries, and property damage liability, which covers damage you do to their car or other property.

Drivers in Michigan are required to have a minimum of $50,000 per person and $100,000 per accident in bodily injury liability insurance and $10,000 in property damage liability coverage You may see that written out as 50/100/10. Michigan drivers are also required to have a minimum of $1 million in PPI coverage, which covers the cost of damage to physical property resulting from a car accident.

How Much Coverage Do I Need

Our recommendation is that Michigan drivers choose the No-Fault PIP option with unlimited medical coverage. It will protect you and your family by making sure you have No-Fault medical coverage available to provide the necessary medical care and treatment if you or a family member is injured in a car crash.

To learn more about our insurance recommendations as new No-Fault PIP medical benefits coverage levels become available in auto insurance policies issued or renewed after July 1, 2020, please check out our blog post, Recommended Car Insurance Coverage For New No-Fault Law.

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Should I Call My Insurance If It Wasn’t My Fault

Yes, you should call your insurance company if you were in a car accident that was not your fault. … First, your insurance company may require you to contact them as outlined in your policy. Second, you may discover available coverage to help you with your damages, even if the accident is not your fault.

Were Committed To Helping Our Customers Navigate Michigan Auto Insurance Reform

Michigan No Fault Insurance issues

Michigan auto insurance reform offers drivers more choices, as well as changes to their auto insurance. While some changes will be phased in over time, most went into effect July 2, 2020. At Frankenmuth Insurance, we want to help our customers understand how their insurance coverage may be impacted.

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My Auto Insurance Premiums Actually Went Up After The New No

Many factors impact your total auto insurance premium. If you made a change to your auto policy, such as adding a driver, buying a new car, moving to another home or if you were involved in an accident, these factors could have impacted your premium. The auto insurance premiums that Michigan drivers are paying today were approved by the Department of Insurance and Financial Services in Spring 2019, before the new no-fault law was passed. If you have questions about your premium, we recommend contacting your local, independent agent.

What Is The Difference Between No

How do at-fault and no-fault states differ when a car crash occurs?In a no-fault state, like Michigan, your insurance coverage will cover your own injuries and medical bills under a personal injury protection policy. The no-fault state laws make this insurance coverage a requirement to drive in the state.

In an at-fault state, the driver who is at fault for the injuries due to their negligence or driving under impairment is the one who pays the cost of any hospital bill or medical concern after a crash. The injured person may have to wait to get compensation until the at-fault driver is completely discovered through the legal system. Some states even split the fault, requiring the injured party to pay for a percentage of their medical care based on the percentage of fault they share in the accident.

This difference is particularly important in a multi-vehicle accident. With no-fault states, you can start working on your claim right away. With an at-fault state, injured parties must wait until law enforcement or attorneys determine who is, in fact, at fault for the crash. Then the claims go to that partys insurance and the payment for injuries begins.

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Lessons Learned From Michigans New No

by Lawrence Kajy

Michigans New No-Fault Law that went into effect July 1, 2020 is an extensive overhaul to the insurance law that had been in place for many years. It mandates that every vehicle owner in Michigan purchase basic No-Fault coverage. However, the law is very complex and offers many different options for Michigan residents.

One of the issues that our firm professionals are seeing is that insurance agents may not be properly explaining what each of the options means to their clients. As a result, these consumers are becoming too focused on their premium rather than the coverage that can help limit their financial risks.

Under the old Michigan law, drivers had to purchase a policy that included unlimited Personal Injury Protection benefits. But now drivers are able to choose from different PIP coverage options. Those PIP coverage options include:

  • Unlimited PIP coverage
  • $500,000 limit
  • $250,000 limit
  • $250,000 limit with PIP medical exclusion this option is for drivers who have qualified health coverage that covers auto accident injuries.
  • $50,000 limit this option is only for drivers who are enrolled in Medicaid.
  • Opt-out of PIP coverage entirely however, you, your spouse and all relatives who live with you must have Medicare or qualified health coverage to be eligible.

Consequences of Not Having Enough Auto Insurance Coverage

Understand the Impact of Your Michigan No-Fault Auto Insurance Decision

What Is Auto Liability

Michigan No

Auto Liability is coverage that protects you and your assets in the event that you are named in a lawsuit due to an auto accident. That State of Michigan sets the minimum amount of coverage that you can legally have. The current minimum limit is $20,000 per person and $40,000 per accident. Broken down, this means that you can injure 2 people in one accident and they will each get $20,000 for a total policy payout of $40,000. This is changing with the new law.

  • The default limit will become $250,000 per person and $500,000 per accident as of 7/2/2020- if you want lower limits you will need to request a decrease and you will need to sign paperwork stating that you understand the risks of having lower limits.
  • The lowest that you will be able to choose will be $50,000 per person and $100,000 per accident.
  • Lower limits are not always the best choice.

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