Our state’s insurance laws give Michigan auto policy holders the best coverage for auto accident medical costs in the country, that’s our Personal Injury Protection (PIP) Medical coverage. I’m a big fan of unlimited PIP Medical coverage! However, your PIP medical might be one of the more expensive items on your auto policy.
Many of us also pay for health insurance that could respond to auto accident medical costs. And, thanks to the Affordable Care Act, your health insurance can’t go up in cost due to claims the way your auto insurance costs can. The good news is that you’ve got two primary options to use your health insurance in a way that will decrease your costs for PIP Medical.
If your health plan is “Qualified” according to state law, you can opt out of PIP Medical and rely on your health insurance to cover auto accident medical costs. Watch out though, because PIP Medical covers more types of services, deals with long term care needs so much better, has no co-pays, deductibles, out-of-network charges, etc. Do not opt out of PIP Medical unless you understand and can live with the limitations of how your health insurance pays for auto accident medical costs. If you’re seriously injured in an auto accident with only a health insurance policy covering the bills, you’re likely to spend a lot of your own money to get the care you need.
The option I prefer here is “Coordinated PIP.” This is where you make your health insurance plan be “first payor” for auto accident medical costs with PIP Medical as the secondary payor until its limit is reached (which won’t happen if you have Unlimited PIP). Your medical care providers handle the coordinating between your health insurance and your PIP Medical. The majority of the time this works with minimal coordinating required of the policy holder. This option is worth considering if you’re one of the people that pays a lot for PIP Medical. Medicare and Medicaid do not qualify for Coordinated PIP.
Want to learn more? Your auto insurance agent is ready to have a good conversation with you on this topic. Give them a call!
