PIP Auto-Reform Legislation

PIP (Personal Injury Protection) is one of the costs that made Michigan the most expensive auto insurance in the country.  Effective July 2nd drivers in Michigan will have additional options when choosing the level of PIP coverage they will have.  Seniors on Medicare will have the option of dropping PIP altogether.  In general we are recommending that seniors keep their full PIP coverage.  We can site an example for why this is a good idea but the coverage speaks for itself.

​Medicare is always considered a secondary payer in auto accidents and covers benefits subject to Medicare rules. Members will be required to pay their plan copays, if any.

There are many items covered under an auto policy’s medical coverage that Medicare does not cover, including, but not limited to:

• In-home attendant care
• Transportation to and from medical appointments
• Vehicle modifications
• Home modifications
• Replacement service
• Case management services
• Residential treatment programs
• Long-term comprehensive rehabilitation
• Electric wheelchairs
• Occupational therapy
• Executive functioning therapy for brain trauma

If Medicare pays for auto-related claims, Medicare can seek reimbursement from any settlement that a beneficiary receives for pain and suffering, thereby leaving less to compensate the beneficiary.