CV-19 has taken the focus off of auto no-fault reform. Rest assured we are on top of it for you! According to the Department of Insurance and Financial Services (DIFS) CV-19 will not impact the implementation of no-fault reform as of 4/16/2020. Reform to our no-fault system has not taken place since its implementation in the 1970s. We have recorded 6 videos that you can find on our YouTube channel Meiers Lombardini Lemanski Insurance. We are also blogging about all 6 of these videos too!
So… you’ve asked us “what do you mean I can opt out of auto no-fault insurance?”
You can’t opt out of everything. Everyone is required to still have wage loss coverage, but you can exclude coverage in two scenarios.
#1-If you have Medicare and have a deductible or $6,000 or less.
#2-If you have a qualified health plan.
Those are the two ways you can opt out but there ae some additional questions that you probably have like “What is a qualified health plan?”
A qualified health plan is where you or your spouses health insurance does not limit or exclude auto accident injuries and has a $6000 deductible or less.
“How do you know if your health plan excludes or doesn’t limit auto accident injuries?”
You will need to contact your health insurance provider and obtain a letter indicated that they don’t limit or exclude auto accident injuries. The letter will also have to indicate every member of the household who is covered under the plan.
There are some pitfalls that you need to be aware of with opting out. One example of this is if you or your spouse change jobs and your health insurance plan now doesn’t cover auto accident injuries…you’ll need to notify your auto insurance carrier within 30 days and add coverage. If you lose your job and your health coverage along with this you’ll need to notify your carrier within 30 days or you will have no coverage. In addition your health insurance may not cover everything that Michigan auto no fault coverage will pay…so depending on your health insurance plan you could be out of pocket for some medical costs.
“What happens if you don’t let the insurance company know that you’ve changed jobs?”
The answer is simple…you won’t have any medical coverage! Due to this we don’t recommend for anyone to opt out entirely for medical as the risks are too high for there to be a potential coverage issue.
Do you still have questions or want to talk more about the changes and their impact to you? Contact us at 517-351-9117 or www.mllins.com and let’s chat! #teammllins
We highly recommend watching our video series on our YouTube channel and check out our video on Opting Out.