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What if I have my own health insurance?

By March 17, 2020April 14th, 2022No Comments

The last two blogs dealt with auto insurance providing medical coverage for drivers injured in an auto accident. This week, we’ll look at the first option to exclude medical coverage and still have health insurance pay primary in the event of an auto accident. This is the first coverage for which proof must be provided in order to qualify. Of course, there are advantages and disadvantages to this option that must be considered before making an informed decision come July.

Limited Coverage of $250,000 (with some or all persons EXCLUDED)

  • If a Named Insured wants to exclude personal injury protection (PIP) medical coverage they must have qualified health coverage
    • This cannot be Medicare
    • The annual individual deductible on the underlying health insurance policy must be less than $6,000
  • Any spouse or resident relative excluded must also have qualified health coverage
  • Excluded drivers have NO PIP medical coverage from their auto insurance policy. In other words, all medical coverage comes from health insurance
  • Selecting this limit eliminates the Michigan Catastrophic Claims Authority (MCCA) fee, saving roughly $220 per vehicle, per year
  • All premium for PIP medical coverage is waived under this option
  • If coverage is no longer active under a qualified health coverage plan, there is 30 days to notify us of the change
    • If a claim occurs within the 30-day window, the injured person’s coverage comes from the Michigan Assigned Claims Plan with a $250,000 limit
    • If a claim occurs outside the 30-day window, the injured person would not have any PIP medical coverage
  • Excess attendant care is available to purchase under this option
  • Cancelling health insurance for any reason would discontinue coverage for auto related injuries under the health insurance policy, whereas PIP medical coverage on an auto policy would continue to pay as long as it’s needed

There are premium savings for selecting this option but the potential coverage gaps could outweigh the benefits. The biggest thing to keep in mind is if health insurance changes: changing jobs, retiring, losing benefits from work, etc; it could negativley impact the benefits received after being injured in a car accident. As questions about this option come up, please reach out to our office!