The short version is that if you have Medicare, but are not eligible for Medicaid and have any assets worth protecting, we recommend you keep your unlimited PIP (Personal Injury Protection). The chart below helps to show why.
In 2019, dramatic changes were made to the Michigan auto insurance law. Drivers now are faced with a number of choices in Personal Injury Protection coverage (PIP), that if selected, could have devastating consequences should they, or their loved ones, suffer serious injury in an auto crash.
Seniors now have the option to completely opt-out from no-fault allowable expense PIP benefits if they satisfy the following two conditions:
1) the person is covered under Parts A and B of Medicare; and
2) the person’s spouse and any resident relative has Medicare “qualified health coverage,” or has no-fault PIP coverage under a separate policy.
Seniors who select this option are not entitled to coverage through the Assigned Claims Plan (ACP) when injured as an occupant of a motor vehicle, but are likely entitled to ACP coverage when injured as a non-occupant or pedestrian, and there is no other insurer from which to recover PIP benefits. ACP medical benefits are capped at $250,000.
Before you consider this option, it is vital to understand what benefits are not available under Medicare, but may be needed should you be severely injured in a crash. Below is a table identifying how the care and rehabilitation needs of a vehicle crash survivor are covered under Michigan’s auto no-fault lifetime/unlimited medical expense coverage vs Medicare.
* With no MSP or Supplemental Coverage | *2022 limits according to Medicare.gov
• Care options may be limited since not all specialists participate with Medicare
• Seniors are more likely to have previous medical conditions such as Parkinson’s Disease, stroke, osteoporosis, diabetes, arthritis and heart disease that may complicate and lengthen the recovery process from an auto accident.
• If the senior received a settlement from an accident claim, Medicare is entitled to recover the cost of any medical expenses paid to the claimant.