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The Rathbun Agency Blog

All You Ever Wanted to Know About Insurance

Why Should Drivers on Medicare Keep Unlimited Coverage?

One of the major changes that no-fault reform is bringing to the auto insurance landscape is the option to select different medical benefit levels. Drivers will have choices moving forward in their Personal Injury Protection, or PIP, coverage, that if selected, could have significant consequences in the event of an accident.

As of July 1st, 2020, seniors will have the option to completely opt-out from no-fault allowable expense PIP benefits if:

  • They have coverage under Parts A and B of Medicare, AND
  • The person’s spouse and any resident relative has Medicare qualified health coverage or has no-fault PIP coverage under a separate policy.

Those who select to opt-out are not entitled to coverage through the Michigan Assigned Claims Plan when injured as an occupant of a motor vehicle, but are likely entitled to Assigned Claims Plan coverage up to $250,000 when injured as a non-occupant of a motor vehicle and there is no other insurer in the line of priority from which to recover PIP benefits.

While it may be tempting to opt out of medical coverage on your auto policy, there are several benefits that Medicare limits coverage or provides no coverage at all. Some of these include, attendant care, case management service, home modifications, replacement services, transportation services and many more. See here for a more complete list of benefit differences.