Important updates regarding Michigan No-Fault Auto Insurance changes
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Important updates regarding Michigan
No-Fault Auto Insurance changes
You have probably heard about changes to the household of the named insured, even if listed as a
Michigan No-Fault law. But you may not realize driver on the named insured’s policy. If your auto
that you will be impacted when the majority of this coverage is through MDA Insurance and either of
law takes effect on July 2, 2020. You may also be these two situations apply to you, you MUST
unaware that some portions of the reform law have CONTACT OUR OFFICE IMMEDIATELY.
already taken effect. Please take time to review the If your policy is through another agency, please
information provided in this packet. It’s critical you contact your insurance agent for assistance.
understand what these changes will mean to you and
your auto insurance policy. If you have questions or Additionally, any uninsured occupants must now
wish to discuss options, call MDA Insurance at pursue coverage through the Michigan Assigned
800-860-2272 and speak with one of our personal lines Claims Plan (MACP) and will have a maximum limit
agents as soon as possible. of $250,000. The policy carried by the owner or
driver no longer provides PIP coverage to
CHANGES ALREADY IN EFFECT: uninsured occupants.
You were notified by your carrier of the changes
that have already taken effect. Most notably, the CHANGES EFFECTIVE JULY 2, 2020:
law significantly changed the Order of Priority Medical Coverage Options: Until July 2, 2020, all
which determines to whom and how Personal Injury auto policies in Michigan are required to provide
Protection (PIP) coverage applies under an auto unlimited PIP benefits. On that date, policyholders
insurance policy. PIP is the portion of your auto will have the option to keep unlimited PIP benefit
policy that provides medical, rehabilitation and other limits or select $500,000, $250,000, $50,000 (if enrolled
related benefits. Under the new law, drivers or in Medicaid), Medicare opt-out or a Qualified Health
occupants of a private passenger vehicle are no longer Coverage Exclusion. Because of the additional
covered for PIP unless they are a named insured on coverages provided under PIP, many of which are
the policy, the spouse of the named insured, or a not offered under health insurance policies,
resident relative of the named insured or spouse. PIP MDA Insurance recommends that policyholders
coverage no longer extends to relatives not living in continue to carry unlimited PIP benefits on
the household of the named insured (unless away their auto policies after July 2, 2020. (over...)
at school) or to a non-relative who resides in the
personal-lines@mdaifg.com
800.860.2272 • mdaprograms.com
3657 Okemos Road, Suite 100 • Okemos, MI 48864-3927
All information is accurate at the time of publication. Details subject to change.
Important updates regarding Michigan
No-Fault Auto Insurance changes
(continued from page 1)
Liability Limits—Bodily Injury (BI): return the forms to the carrier, your policy will
After July 2, 2020, the revised, default liability limit renew with unlimited PIP and $250,000/500,000 BI.
will be $250,000 per person/$500,000 per occurrence. By law, if you choose to opt-out of PIP, proof of
You may elect lower limits by signing an acknowl- qualified health coverage or other documentation
edgement form. Limits cannot be lower than $50,000 will be required.
per person/$100,000 per occurrence. Stay Informed: These changes will affect your
Because individuals injured in auto-related policy, so it’s important you understand what
accidents will be able to seek financial compensation they mean. Please read the following articles
for damages not covered by their own policy from originally published in the March 2020 issue of
the at-fault party, MDA Insurance recommends the MDA Journal to enhance your understanding.
that policyholders carry no less than $500,000 per We invite our insureds to call MDA Insurance at
person/$500,000 per occurrence BI limit. Due to the 800-860-2272 to ask questions, discuss your options
increased likelihood of auto-related liability lawsuits, and review your choices. Thank you for allowing
we also urge you to purchase a personal umbrella us to be a trusted resource as you navigate these
policy. Affordable limits up to $10 million are significant changes to your auto coverage!
available.
If your auto insurance is through another
Michigan Catastrophic Claims Association (MCCA) insurance agency,
Assessment: Effective July 2, 2020, the MCCA are they providing
assessment will drop to $100 per vehicle for those you with this
who choose to keep their unlimited PIP benefits. important REQU
As a result, even those policyholders who keep EST A
QUOT
information?
unlimited PIP benefits will likely see some premium
E
If not, it may be
relief. Those who select lower PIP limits will not be time to get a quote
charged an MCCA assessment. HOME
from us. Call
I & AUT
What to Expect: Prior to your first renewal after 800-860-2272
N S U RANC O
July 2, 2020, your carrier will mail you the forms to today or visit 800.8 E
make changes to your PIP and BI limits. If you do not mdaprograms.com.
6 0 .2272
personal-lines@mdaifg.com
800.860.2272 • mdaprograms.com
3657 Okemos Road, Suite 100 • Okemos, MI 48864-3927
!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Request for quote
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Personal information
First and last name Date of birth
______/_____/_____
Home address (please include city, state and ZIP)
Township County
Please contact me via:
o Phone ______________________________________ o Email ______________________________________ o FAX: ______________________________________
�������������������������������������������������������
o MDA o Alumni Association ___________________________ o AARP/Retired o Other __________________________________________________________
Please check all that apply: o Health insurance covers injuries resulting from auto accidents o Automatic backup generator o Mortgage free
o Non-smoker o Dogs (if yes, which breed(s)? _______________________________ o Pool o Fireplace o Boat o Snowmobile
Home information
Property address (please include city, state and ZIP) Current homeowner insurance carrier
Year built Year roof replaced Ownership Owner-occupied? Frame or brick? Square footage # of stories
__________ __________ o Own o Rent o Condo o Yes o No o Frame o Brick __________ SF ______ stories
����������������������������������������������������������������������
__________ o Yes o No o Yes o No o Yes o No o Attached o Detached __________
������������������������������������������������������������������������������
______ miles ______ feet o Yes o No o Yes o No
Market value Current coverage Umbrella coverage Deductible
$________________ $________________ $________________ $________________
Auto/Motorcycle/ATV information
Current auto insurance company
Vehicle 1 Vehicle 2 Vehicle 3
Year/Make/Model
Vehicle ID (VIN)
Driver’s name / Date of birth
Driver’s license #
Number of miles to work
Comp deductible
Collision deductible
Bodily injury / property damage
Uninsured / underinsured
Tickets/accidents in last 3 years? o Yes (what year? _________) o No o Yes o No o Yes o No
Towing coverage?
Rental reimbursement? o Yes o No o Yes o No o Yes o No
I need an additional quote for: o Life insurance o Flood insurance o Motorcycle insurance
mdaprograms.com • 800.860.2272 • FAX 517.484.5460
AU TO I N SU R A N CE REFO R M
A LIFE CHANGED
IN AN INSTANT
Redeemed by Sheer
Determination and No-Fault’s
Unlimited Medical Coverage
By Cindy Hoogasian
4 JOURNAL OF THE MICHIGAN DENTAL ASSOCIATION • MARCH 2020
A COLLISION.
SIMULTANEOUS SCREAMS.
A LIFE CHANGED FOREVER,
DUE TO INATTENTION.
L ast year, Michigan reformed its No-Fault law to allow
motorists to opt for lower levels of Personal Injury
Protection instead of mandating unlimited PIP for all
drivers. It was hailed as a major victory for consumers
— but stories like the one you are about to read cast
another light on this no-fault “improvement.”
What follows is a harrowing story of how MDA Services
employee Jennifer Marshall learned, at the age of 38, how
to stand again, how to take a step again. How to walk two
feet, three feet . . . across a room. How to reclaim her life
— a life that may have been very different today if her
horrific automobile accident had occurred anywhere but
in Michigan.
It was a hot spring day, that Sunday, March 25, 2012.
Jennifer and her boyfriend, Ken, had been fishing and
enjoying the unseasonably warm weather. Jennifer was
driving a small pick-up truck that carried a portable
barbeque grill in its bed. They were northbound on Larch
Street in Lansing, climbing a hill on an overpass, when the
wind flipped the grill out of the truck. With no shoulder to
stop on, Jennifer stopped the truck in a traffic lane and she
and Ken got out of the truck to retrieve the grill and protect
other motorists from hitting it.
A young, uninsured, and unlicensed motorist at the
bottom of that hill was preoccupied, texting instead of
driving. By the time he looked up, he couldn’t stop his
Cavalier. Ken yelled at Jennifer to get out of the way, but
there was no time. The car slammed into Jennifer at
about 35 miles per hour, pinning her legs mid-thigh be-
(over)
JOURNAL OF THE MICHIGAN DENTAL ASSOCIATION • MARCH 2020 5
from her bed to her wheelchair. She What was the critical factor in
Auto Insurance Reform slid from her wheelchair to the show- Jennifer’s ability to get the care she
(Continued from Page 5) er chair and back again. Walking was needed to learn to walk again, and to be
not an option. Doctors told her it was able to return home to live indepen-
unlikely she would ever walk again. dently and mother her child? Was it her
between the truck and the car. Her healing had several major set- determination?
“I kept yelling at him to get it off, backs. Jennifer developed diabetes, Sure, she was determined and willful.
get it off,” Jennifer recalled. “But he which hampers healing, and became But determination doesn’t pay the stag-
was too stunned to move. That’s prob- insulin-dependent. She developed gering medical bills. In reality, the criti-
ably what saved my life.” pneumonia. Jennifer had two PICC cal factor was the unlimited, lifetime
When the paramedics got to the lines inserted for the administration medical care that Jennifer received for
scene, Jennifer was still conscious of various drugs. Her legs continued anything related to the injury she sus-
and pinned between the vehicles. to be extremely swollen. Infection set tained in her automobile accident, due
Miraculously, she was able to move in. She underwent surgery to address to the Personal Injury Protection provi-
the toes on both her feet — her doc- the infection and awoke in the inten- sions in Michigan No-Fault auto insur-
tors later told her they couldn’t sive care unit with a wound VAC ance law.
believe it was possible. Morphine was attached to her legs. “One of my nurses told me I was
administered on the spot to deal with lucky this happened in Michigan,”
the excruciating pain. Jennifer’s mind “Please come home” Jennifer remembers. “She said if this
went to the practical. She asked for For months, the prospect of ever had happened in another state, I’d be
her 13-year-old son, Caleb. As a single returning home seemed unlikely — living the rest of my life in a Medicaid
mother, she was worried about his and scary, too. But Caleb really wanted nursing home and probably would
ongoing care while she fought for her his Mom to come home and for them have had my legs amputated.”
life. She asked Ken to notify her to have a normal life. He had been
employer that she “probably won’t be bouncing around with grandparents The sky is the limit
coming in tomorrow.” and other family members, sleeping on Because her catastrophic injuries
sofas with his new puppy. That wasn’t were sustained in an auto accident, she
Emergency surgery the life Jennifer wanted for her son, worked with two insurance adjustors.
EMS transported her to Sparrow and being disabled wasn’t the lifestyle One was assigned by MEEMIC, her
Hospital in Lansing, where emergen- she wanted for herself. Jennifer was insurer, until the claim hit the thresh-
cy surgery was performed. It would determined to recover and be an active old to kick it over to the Michigan
be the first of 14 operations she would mother to her young son. Catastrophic Claims Association.
undergo, to date, to reconstruct her Caleb asked her to please come That’s when her second adjustor, with
legs. Her right leg was flayed open, home. She was able to do that in June whom she continues to work, got
down to the bone. It was so badly 2012, after spending more than three involved. Jennifer still has a case work-
mangled that she doesn’t know if any months in the hospital. er to coordinate her continuing care.
bones were broken. Jennifer’s left leg “I got a walker for my birthday, July “‘The sky’s the limit’,” Jennifer recalls
was broken. But the doctors were lib- 29,” Jennifer recalls. “I took two steps her doctor telling her during her initial
eral with pain medication, which at and was exhausted. I had to keep hospitalization. “He said, ‘You have full
first was a blessing but became a pushing myself. I’d walk three feet. coverage for anything that needs to be
problem when Jennifer became medi- Then five feet. I had to rebuild my leg done’ because I am a car accident vic-
cally dependent on the drugs. muscles. I had physical therapy three tim. Suddenly, people were really inter-
“They’d ask me my pain level, but I times a week. I didn’t like to go out ested in me. I saw lots of doctors and
was so drugged up I didn’t feel any except to go to appointments. But I lawyers. They all managed to find me. It
pain,” she said. That also proved to be did go to Caleb’s eighth-grade gradua- was a very confusing time. I was asked
a challenge to her recovery. Pain helps tion in my wheelchair because he to make a lot of decisions I didn’t feel I
us identify our physical limitations. wanted me there so badly.” was able to make because of the drug
Ultimately, Jennifer had to suffer with- Eventually, Jennifer did walk inde- fog and the trauma. Eventually, I got
drawal symptoms and then get on a pendently. She now drives, dances, help from a close relative who looked
sustainable regimen for pain relief. works hard, and enjoys life. Jennifer out for my needs and shielded me from
Jennifer received a lot of in-patient lives every day to the fullest. “Life is some of the people who were looking to
therapy. There, her big accomplish- for living,” she says. “You are not guar- exploit me.”
ment was mastering sliding. She slid anteed tomorrow.” To help Jennifer recover, her auto
6 JOURNAL OF THE MICHIGAN DENTAL ASSOCIATION • MARCH 2020
insurance coverage provided all the ject to revision as the rules around
following items, and more: No-Fault Reform are developed and
n Any kind of surgery required on implemented.
her legs, including skin grafts and “Don’t count on your health insur-
scar reduction. ance to fill in the gaps of coverage,”
n Modifications to her home, cautions Craig Start, president of
including grab bars, handrails and MDA Insurance. “Health insurance
ramps. Fortunately, the doors were doesn’t pay for everything. There are
wide enough to accommodate a annual limits on physical therapy ses-
wheelchair. sions. It doesn’t pay for 24-hour nurs-
n Initially, 24-hour nursing care at ing at home or for extended care in
home, which tapered off to four times rehabilitation or nursing home facili-
per week and then converted to paying ties. There is a lot that your health
family members as caregivers. Now insurance won’t cover, and medical
she has an occasional visiting nurse. bankruptcy is a real possibility if you
n Home chore providers for clean- leave yourself exposed.”
ing, cooking, yardwork, and similar Anyone who is considering select-
tasks. “I am so grateful that ing a lower level of PIP would be well-
n A treadmill to help her rebuild advised to heed Craig’s caution and
her walking tolerance. I have unlimited medical Jennifer’s words: “If you have to drive
n A recliner to reduce the swelling coverage for injuries a car that costs less to insure, or if
in her legs. you have to opt for a lesser car to
n A wheelchair and walker.
related to this accident, afford the unlimited PIP benefit, do it,”
n Surgical supplies, and in what- I would not be where I am she says. “I hope people stick with
ever quantities are required. having full coverage. If you ever need
n Prescription drugs.
today, having a productive it, you will not regret it. You have
n Mental health counseling for and happy life, if it were been paying for it all of these years.
Post-Traumatic Stress Disorder. Why change now? There was a reason
n Ongoing medical consultations
not for Michigan’s it was put in place to begin with.
and evaluation of her accommoda- No-Fault law. Believe me, you never know how
tion needs. important it is until something hap-
“I am so grateful that I have unlim- —Jennifer Marshall pens to you like what happened to
ited medical coverage for injuries me. And it can happen to anyone, at
related to this accident,” Jennifer A word of caution any time. People driving now seem to
says. “I would not be where I am Last year, Michigan reformed its be paying even less attention to the
today, having a productive and happy No-Fault law to allow motorists to opt road than they were in 2012.”
life, if it were not for Michigan’s for lower levels of Personal Injury Jennifer acknowledges that telling
No-Fault law. Protection instead of mandating her story to MDA members drudged
“I have the best care. I have the unlimited PIP for all drivers. up some difficult memories and a lot
best doctors. I have anything that I Beginning with auto policy renew- of emotion. But she wanted to share
need to continue to recover from this als in July, Michigan drivers will be her story to help MDA members make
accident. The work they have done on able to opt for $250,000, $500,000 or wise and informed choices for them-
me is amazing. I wouldn’t be mobile, I unlimited PIP. Even lower levels of selves and their loved ones when
wouldn’t be working, without all the coverage are available if at least one selecting PIP coverage this year and
physical therapy. No matter what was named insured is on Medicaid. PIP in the future.
prescribed, what was needed, they premium reductions will be offered “This is my way of paying it for-
did it. Two years ago, my claim totaled for lower-level coverage. However, the ward,” she says. “I have been blessed
$847,000. I’ve had two surgeries since savings are likely to range from 10% to to have the life I have now. I want oth-
then and I have no doubt the cost of 35% of your PIP current premium, not ers to be able to recover if something
my care and rehabilitation now the significant savings being reported should happen to them.”
exceeds $1 million. Without unlimited in the media. Additionally, the MCCA
medical for these injuries, my life fee for all drivers will be reduced by Please see related article by MDA IFG
would be very, very different today.” about $100. These estimates are sub- President Craig Start on following page.
JOURNAL OF THE MICHIGAN DENTAL ASSOCIATION • MARCH 2020 7
MDA INSURANCE
No-Fault Reform: It May
Not Be What You Think It Is
By Craig Start, MBA
President, MDA Insurance
I
magine this potential scenario once no- ages, because they are of great importance.
fault auto reform is in place this July: It’s
late and you’re driving home from din- Personal Injury Protection (PIP)
Currently, there is unlimited Personal Injury Protec-
ner with your family. A 25-year-old man tion (PIP) coverage in Michigan. That means in the event
is driving intoxicated, and headed straight for you. He of an accident, you are entitled to have all your medical
crosses the center line and hits your car, ricochets off, expenses relating to that injury covered, for the rest of
and hits a tree. The young man is undisputedly at fault, your life. The great news is unlimited PIP coverage is not
and ticketed for driving under the influence. His extensive going away under no-fault reform. In fact, early predic-
injuries render him a paraplegic. Sadly, to save some mon- tions even project that if you keep your insurance poli-
ey, he had reduced his insurance Personal Injury Protec- cies exactly as they are now with unlimited PIP, you may
tion coverage cap from unlimited down to only $250,000. even pay slightly less in 2020. This savings will be modest
That money runs out pretty quickly due to the severity of under the reform (approximately 10% to 35% of your PIP
his injuries and he eventually files bankruptcy. current premium) and not the vast savings the media is
In this scenario, thankfully, no one in your family is touting. This is because the PIP premium is just a small
seriously injured in the accident. And if you had been, percentage of the overall premium you pay in on your
you would have breathed a sigh of relief knowing you had auto policy. However, considering the enormous financial
chosen not to reduce your PIP coverage from the unlim- protection it provides in the event you are injured in an
ited level you’ve always had as a Michigan resident. You accident, the choice to stick with unlimited coverage
feel good knowing you made the right choice to protect should be obvious.
yourself and your family. At the time of this writing, no-fault reform will offer
Case closed? Think again. Unfortunately, the danger is Personal Injury Protection (PIP) coverage choices of:
twofold: PIP limits and insufficient bodily injury mini- n Unlimited (10% potential PIP premium savings).
mums. Let’s take a closer look at these important cover- n $500,000 (20% potential PIP premium savings).
n $250,000 (35% potential PIP premium savings).
n $50,000: Medicaid required on at least one named
MDA Insurance Recommends . . . insured (45% potential PIP premium savings).
n Opt-out: Medicare A and B proof required on at
4 Keep your PIP limits least one of the names insured (100% PIP premium sav-
at unlimited ings).
n Health Coverage Exclusion: Available to individuals
4 Purchase additional
with a qualified health plan.
bodily injury limit
coverage It is understandable that the lure of saving money on
premiums will entice many Michigan residents to move
4 Put an umbrella away from unlimited coverage to limited caps. However,
insurance policy in it doesn’t take long before those caps are wiped out in
place serious injury cases. And you’d be left paying the differ-
ence. Don’t take the bait!
4 Consider enrollment in the MDA Health Plan Taking anything less than unlimited coverage could
8 JOURNAL OF THE MICHIGAN DENTAL ASSOCIATION • MARCH 2020
JOURNAL CL ASSIFIEDS
not only leave you bankrupt from
paying your own uncovered medical
bills, it could potentially leave you
vulnerable and wide open to law-
suits. How do you protect yourself
from a potential lawsuit, as in the
scenario presented in the auto acci-
dent above? In the example, you did
Checklist: Michigan the right thing by keeping unlimited
coverage, yet you are open for a
No-Fault Auto Insurance bodily injury lawsuit under no-fault
reform. Unfortunately, this could be
√ Watch the mail for your pre-renewal package: the new norm with the no-fault re-
form, with an avalanche of lawsuits
Your pre-renewal package will arrive 30 to 90 days before your policy
predicted to clog our judicial system.
renewal date. It will include a policy summary and the new Personal
So, how do you protect yourself?
Injury Protection (PIP) and Bodily Injury (BI) election forms. With added bodily injury coverage
√ Open and read your auto insurance renewal packet and umbrella insurance.
carefully: Often, policyholders receive their auto insurance renewal
packets and dismiss them without review, or without ever opening them Bodily injury coverage
at all. However, with critical changes already in effect, and more to come, The current state minimum bodily
injury coverage is $20,000/$40,000.
it is critical you open your policy documentation, read it carefully,
This is the coverage that protects you
and complete and return your PIP and BI election forms if you wish to
against damages in lawsuits by an in-
change your limits. Contact your auto insurance agency with questions.
jured party. However, since Michigan
√ Determine your Personal Injury Protection (PIP) limit. is the only state with unlimited PIP
While it might be tempting to reduce your PIP from unlimited, as it coverage, bodily injury coverage has
always has been, don’t take the bait. MDA Insurance recommends rarely come into play since everyone
already has unlimited coverage for
that policyholders continue to carry unlimited PIP benefits on their
their medical costs. Not anymore.
auto policies after July 2, 2020.
Consider this: 10 months later, the
√ Keep Liability Limits/Bodily Injury (BI) no less than 25-year-old driver decides to get a law-
$500,000/person. After July 2, 2020, the revised, default Liability yer to sue you for his uncovered medi-
Limit/Bodily Injury will be $250,000 per person/$500,000 per occurrence. cal injuries, even though he was the
MDA Insurance recommends that policyholders carry no less than one who caused the accident. The sav-
$500,000 per person/$500,000 per occurence BI limit. vy lawyer discovers from the chip in
your car that you were driving 5 miles
√ Be sure you understand changes already in effect per hour over the speed limit at the
regarding who is no longer covered on your policy. time of the accident. The young man
PIP coverage no longer extends to relatives not living in the household now has ammunition to sue you for
of the named insured (unless away at school) or to a non-relative who some of his uncovered medical bills
resides in the household of the named insured even if listed as a driver on incurred since the accident. The law
the named insured’s policy. If either of these two situations apply to you, does not protect your retirement or in-
vestment accounts from liquidation to
you should contact your auto insurance agency immediately.
pay damages. This is just one example
√ Obtain an umbrella policy. Due to the increased likelihood of of what may be coming under the no-
auto-related liability lawsuits in the state, we urge you to purchase a fault reform. It not only demonstrates
personal umbrella policy. Buy as much as you can afford. the vital need to keep your unlimited
√ Talk to a Personal Lines Agent at MDA Insurance. If you
have questions or wish to discuss options, call MDA Insurance at (continued on following page...)
800-860-2272 and speak with one of our personal lines agents.
9
PIP in place, but also to purchase addi- much umbrella insurance as possible, Putting an umbrella insurance pol-
tional bodily injury protection. MDA as $1 million will not go far in the sce- icy in place for further security should
Insurance recommends having mini- nario depicted above. you be sued by others who opt for re-
mum bodily injury coverage of $500,000 duced PIP coverage or who have opted
per person, per occurrence. The bottom line out of carrying coverage altogether.
No one knows all of the fallout and Considering enrollment in the
Umbrella insurance repercussions that will occur under MDA Health Plan, where the plan is
To safeguard yourself should your the no-fault reform, and some of the the primary coverage in an auto acci-
bodily injury protection limits be ex- details of the law are still evolving. dent, providing you with an added
hausted, MDA Insurance also recom- However, MDA Insurance is staying layer of protection.
mends having an umbrella insurance abreast of all the details and will MDA Insurance is the single source
policy in place. An umbrella insur- guide MDA members through the for all your insurance needs, both per-
ance policy is extra liability insur- process. Our recommendations once sonal and professional. It has your
ance coverage that goes beyond the the law is in place in July 2020 in- vantage point in plain view and knows
limits of your home, auto, or water- clude: dentistry like no other entity. We will
craft insurance. It provides an addi- Keeping your PIP limits at unlim- continue to share updates as they un-
tional layer of security to those who ited. We will get you the most com- fold, and will relentlessly fight on your
are at risk for being sued for damages petitive rates available, without com- behalf to ensure you are protected.
to other people’s property or injuries promising your coverage. If you have questions about the
caused to others in accidents. The Purchasing additional bodily in- fast-approaching no-fault reform
good news is that umbrella insurance jury limit coverage to protect your- changes, please call us at 800-860-
is extremely inexpensive, costing self against the threat of lawsuits 2272 and speak with a representa-
around $150 per year for $1 million in from those who have chosen to re- tive from our personal lines depart-
coverage. We recommend buying as duce their coverage. ment.
10Medicare and No Fault Auto Insurance Change
According to the Michigan Department of Insurance
and Financial Services (DIFS), after July 1, 2020, Michigan
Medicare beneficiaries who renew or purchase a new
no-fault automobile insurance policy can “opt-out” of
Personal Protection Insurance (PIP) medical benefits if
they wish. The beneficiary must demonstrate that they are
enrolled in Medicare Parts A & B and that their spouse or
any relative who resides with them in the same household
has either qualified health coverage or auto insurance that
includes PIP medical benefits.
Medicare will pay for Medicare-covered services for beneficiaries who opt out of PIP medical benefits and are
injured in an automobile accident and have no other available coverage. The beneficiary will remain financially
responsible for coinsurance, copayments, deductibles and any other services that Medicare does not cover.
The new law also allows Medicare beneficiaries to purchase lower than unlimited levels of PIP medical
coverage -- $500,000 or $250,000 per person per accident. If a beneficiary is injured in an accident and exhausts
his or her PIP medical limits, and has no other available coverage, Medicare will pay for “Medicare-covered”
services.
Before opting-out or choosing a lower PIP medical benefits we strongly encourage you to consult with your
auto insurance agent or a financial adviser so that you are completely aware of what these changes in the law
mean from a practical, monetary and risk standpoint.
If you can afford the unlimited PIP coverage, we encourage you to keep it. We also encourage you to talk
with your home and auto agent regarding securing an umbrella policy to protect your assets. Changes in the
Michigan No-Fault law will mean that if a driver who has opted to have less than unlimited PIP coverage
(in order to save money on their auto insurance premiums) is injured in an auto accident involving you, they
will be able to sue you to cover their medical expenses that go beyond the limits of their own PIP coverage.
We anticipate the number of lawsuits will increase dramatically as a result of this loophole in the law. Your
life’s savings, including your retirement accounts, can be at risk. Umbrella insurance provides another layer
of protection.
LIFETIME PIP COVERAGE VS. MEDICARE
COVERAGE AUTO UNLIMITED PIP MEDICARE
Post–acute care Yes, 100% as long as needed 100 days 80%
Long–term care Yes, 24/7 if needed Not Covered
Residential treatment programs Yes Not Covered
Attendant care Yes Limited
(Home Health Aide services 2-3 times weekly for 4 hrs. during acute recovery)
Transportation services Yes Not Covered
Replacement services Yes Not Covered
(Homemaker services, personal care, meal assistance)
Massage therapy Yes Not Covered
Vehicle modifications Yes Not Covered
(Accommodate wheelchairs, hand controls, etc.)
Wage loss (if senior is still working) Yes – up to 3 years Not Covered
personal-lines@mdaifg.com
800.860.2272 • mdaprograms.com
3657 Okemos Road, Suite 100 • Okemos, MI 48864-3927
11No one knows when
disaster will strike.
But when it does,
we have you covered.
Big changes are coming in July 2020 to Michigan’s
No-fault law. Leave nothing to chance. Be prepared
by getting the facts from MDA Insurance. We will
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provide you the best coverage at the best rates.
auto and home coverage?
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personal-lines@mdaifg.com
800.860.2272 • mdaprograms.com
3657 Okemos Road, Suite 100 • Okemos, MI 48864-3927You can also read
