The Michigan state legislature initiated auto insurance reform in 2019 to provide financial relief to Michigan drivers. This reform affects the level of personal injury insurance (PIP) you choose for yourself under your auto insurance plan, as well as others covered under your plans.

What is Michigan auto insurance reform?

Public Acts 21 and 22 are amendments to the state of Michigan’s Insurance Code. They were passed by the state legislature in June 2019 and went into effect on July 1, 2020. The amendments are part of the legislature’s effort to make Michigan’s no-fault auto insurance more affordable by giving members options.

How does this affect my auto insurance?

As of July 1, 2020, you have the option to choose your level of PIP, or Personal Protection Insurance, in your auto insurance plan. PIP pays for your medical expenses if you’re injured in an automobile accident. Before Public Acts 21 and 22, PIP was a state-required charge within your policy, and the state required all members to purchase unlimited PIP coverage.

Does my U-M health plan cover medical expenses related to an auto accident?

Yes; U-M health plans have always paid primary for auto accident-related medical claims for enrolled members, and continue to pay as primary under the new law. This is true for covered employees and retirees, even for retirees where Medicare pays primary. PIP is the primary coverage for medical claims only when coordinating with plans that pay secondary after auto insurance.

U-M’s health plans do not cover certain services, such as attendant care, housing and vehicle modifications, and lost wages.

What are my PIP options under Michigan's no-fault auto insurance reform?

You have the option to continue unlimited PIP coverage on your auto insurance policy if you prefer. You may also have the option to purchase different levels of PIP coverage, including waiving PIP coverage altogether, depending on your personal/family situation and whether you and others in your household are enrolled in qualified health coverage, as defined by the law. Your insurance agent can provide more detail about the options available to you and the impact on your auto insurance cost.

Is my health insurance plan through U-M considered qualified health coverage?

Yes. Employees and retirees enrolled in U-M health plans are already covered for medical claims resulting from an automobile accident through these plans. U-M health plans are qualified health coverage as defined by the insurance code. However, U-M health plans do not cover certain services, such as attendant care, housing and vehicle modifications, as well as lost wages.

My auto insurance company has requested a letter stating I have qualified health coverage. Where do I get my letter?

Get a Health Care Plan Verification Letter through Wolverine Access by selecting Employee Self-Service > Benefits > Health Care Plan Verification. Follow the instructions on that page to have your letter created. Turn off pop-up blocker and private browsing prior to opening your Auto Health verification letter. If you are unable to access Wolverine Access to obtain your Health Care Plan Verification Letter please email [email protected] with your request.

If U-M health plans cover my medical expenses related to an auto accident, should I still purchase PIP through my auto insurer?

It depends on your individual situation. Some people have additional disability insurance that may pay for expenses not covered in U-M’s health plans, such as attendant care, housing and vehicle modifications, and lost wages. Talk with your auto insurer about your options. Determine how you would be affected financially if a family member in your household needed excessive medical care after an auto accident.

Where can I find more information about Michigan auto insurance reform?

Go to michigan.gov/autoinsurance for more information.

Drivers may wish to discuss their PIP options with their auto insurance agent.