Do I Have To Buy Car Insurance In Michigan
Car owners are required to buy car insurance in Michigan. If you are currently uninsured, you can purchase car insurance without facing any penalties during an18-month amnesty period starting July 2, 2020.
After that, if youre caught driving without car insurance, you could be fined between $200 to $500, or spend up to a year in jail, or both.
What Are Medicare Liens For Pain And Suffering
A Medicare lien on a car accident victims recovery of pain and suffering compensation is usually how Medicare ensures that it will be reimbursed for any conditional payments made on the injury victims behalf for car accident-related medical expenses.
Lawyers refer to these as Medicare super-liens.
Heres why:
If Medicare covers auto accident-related injuries for a car accident victim and that victim, ultimately, obtains a settlement or jury verdict for pain and suffering compensation as a result of his or her injuries from the car accident, then the victim must use as much of that money as is necessary to repay Medicare for what it paid out in medical expenses.
Federal law gives Medicare full legal subrogation rights to use its super-lien powers to make sure the victim repays whatever he or she owes .
Realistically, a Medicare super-lien for a car accident victim who has opted out of No-Fault insurance could leave the car accident victim with a vastly reduced settlement recovery, or with nothing at all for all the pain and all the injuries he or she has suffered.
This would not be the case if medical care is covered by No-Fault insurance.
The new auto law in Michigan dangles the possibility of savings on No-Fault for people who opt for Medicare. But Medicare covers auto accident-related injuries differently from No-Fault insurance and comes with many of its own unique risks for car accident victims.
When Do I Sign Up For Medicare
The initial enrollment period spans three months before to three months after your 65th birthday. You can sign up for Part A any time during or after your initial enrollment period. If you sign up for Part B after this period, and you dont have group coverage through your or your spouses employer, you will face a late enrollment penalty. If you are covered under a group plan, youll be able to enroll in Medicare up to 8 months after that coverage ends.
You can or in person at your local Social Security office.
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Will Liability Insurance Cover My Medical Bills
Basically, liability coverage is a part of your car insurance policy, and helps pay for the other drivers expenses if you cause a car accident. Bodily injury liability helps pay for the other drivers medical bills, lost income, and emergency aid if theyre hurt in the car accident and youre at fault.
Under What Circumstances Does Medicare Cover Auto Accident Injuries
Theoretically, Medicare would cover auto accident-related injuries without seeking reimbursement only if the person had no No-Fault auto insurance to provide coverage.
But thats not how things have worked out in Michigan because we do have No-Fault, which became mandatory for all drivers in 1973.
In practice, Medicare has generally not covered or been the primary payer on auto accident-related injuries in Michigan because auto No-Fault insurance has been expected to provide all medical care and coverage.
That is consistent with the federal law known as the Secondary Payer rule, which says they will not pay for any item or service to the extent that . . . payment has been madeor can reasonably be expected to be made . . . under an automobile . . . insurance policy . . . or under no fault insurance. 42 CFR Part 411.50)
However, on those unexpected occasions when the federal health insurance program has ended up paying for something that No-Fault should have covered , then those payments would be considered conditional payments.
The danger with conditional payments is that they will expect to be reimbursed . . . unconditionally.
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Gms Health Care Plans Meet The Requirements To Be Considered Qualified Health Coverage
Beginning July 1, 2020, Michigans new auto insurance law allowed you to choose a level of Personal Injury Protection coverage that may affect your auto insurance premium. You may even opt out of PIP coverage if you have other qualified health coverage or are enrolled in Medicare.
If you reside in Michigan, your auto insurance carrier may ask you to provide information identifying individuals covered under your health care coverage and a statement that the coverage does not exclude or limit auto accident injuries and has an individual deductible of less than $6,000.
If you are enrolled in a GM medical plan, you may contact BCBSM at 1-800-482-2210 to request a letter confirming you and your enrolled dependents have qualified health coverage under Michigans new no-fault law.
Please note that Michigans No-Fault Personal Injury Protection coverage pays for more than medical expenses, including costs for attendant care, housing modifications, lost wages, etc. You should discuss PIP coverage and other auto coverage options with your auto insurance carrier or agent.
Extra Steps To Get $0 Pip
The new system requires extra steps from drivers who aren’t on Medicare and wish to save money by opting out of PIP and relying on their commercial health insurance for auto accident injuries.
For one, not all insurance agents may allow drivers who aren’t on Medicare to simply request $0 PIP. Agents may instead require them to first choose a $250,000 PIP coverage plan, and then the “PIP medical exclusion” option with that plan to get $0 PIP. This “$250,000 with PIP medical exclusion” plan is essentially the same as the $0 PIP plan offered to Medicare beneficiaries.
Some agents have been giving out wrong information in recent weeks, claiming that only Medicare beneficiaries can get a $0 PIP plan.
In one instance, an agent erroneously told a Free Press reporter seeking a July price quote that “you’d have to have Medicare” to get $0 PIP, and that despite the reporter having “qualified” health insurance coverage that covers auto accidents, the lowest PIP option available to them was supposedly a full $250,000 policy that would only result in minimal price savings for a Detroit address.
Duggan raised the issue of misinformed insurance agents during his recent presentation.
“In some cases, I’m hearing reports of insurance agents giving information thats wrong,” he said. “Insurance agents typically make 10 or 15% commission, so if your car insurance bill goes from $4,000 to $3,000, they lose real money.
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Bulletin #4 What The Change In The No
On May 30, 2019, Governor Whitmer signed a major overhaul to the Michigan no-fault system, completely transforming Michigan car accident law. The legislation took effect on June 11, 2019 as Public Act 21 of 2019. There a number of huge ramifications for Michigan drivers, their families and anyone who uses a car, truck or motorcycle in this state.
Over the next few months I will be writing about these changes and the effects they will have on all of us. The new law becomes effective in different stages, so the impact will be incremental over time. Please call our office at 1-800 LEE-FREE with any questions about the new law. Our dedicated staff of Michigan car accident lawyers, paralegals and staff members are here to help.
This bulletin will evaluate the changes in who pays for auto accidents and what it means for our states Medicaid system.
Medicaid Car Insurance: Everything You Need To Know
Low-income families in the United States can receive health care coverage from the federal Medicaid program. Each state manages its own program, which shares funding from the state and federal governments.
Low-income families in the United States can receive health care coverage from the federal Medicaid program. Each state manages its own program, which shares funding from the state and federal governments. While Medicaid car insurance does not exist, some policies may cover medical expenses the member incurs in an auto accident. However, this coverage will not pay for injuries suffered by passengers or damage to the member’s vehicle. It also does not cover liability in an at-fault accident. If you have difficulty affording auto insurance, you may qualify for special programs that are available in certain states.
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How Many Uninsured Drivers Are In Michigan
Michigan has the fourth highest proportion of uninsured drivers in the country, according to the Insurance Research Council. Almost 20% of car owners dont have auto insurance.
If an uninsured driver crashes into you, your PIP insurance would cover your medical bills, but you wont be covered for pain and suffering.
Uninsured motorist coverage can help cover expenses like lost wages, replacement services for tasks you can no longer do, pain and suffering, and medical bills if a driver without insurance causes an accident.
Should I Use Medicaid To Pay For My Hospital Bills After An Accident
Nearly 70 million Americans receive Medicaid as of August 2020. If youre one of them, its important to know the role it will play if youve been involved in an injury-causing accident.
If you are a Medicaid recipient then Medicaid will pay your medical bills at a greatly discounted rate. Because of that, its a good idea to use it to pay for all of your healthcare treatments, including after a car accident.
However, keep in mind that at Wagner Reese, its our goal to get you paid via the at-fault party and their insurance provider, which can ultimately result in more money for you and your loved ones than if you rely on Medicaid coverage alone.
Medicaid only pays for medical expenses relating to an injury and/or illness, it does not pay for other losses such as lost income, pain and suffering and physical impairments caused by a car accident. These losses are the responsibility of the at-fault party.
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Auto Insurance Requirements In Michigan
Michigan has historically been one of the more expensive states in which to buy insurance. This is because the state requires far more coverage than others. To be a legal driver in Michigan, you must adhere to the states guidelines, else you could face steep penalties. Find out more about Michigan insurance requirements and optional coverages below.
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Available options:
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While these are the state-mandated coverage requirements, a lender or leasing company may require coverage to protect your vehicle against physical damage, sometimes known as full coverage.
Will Medicare Pay My Medical Bills If Im Injured In An Auto Accident
Yes, as long as you can prove that you have no other available health care coverage.
In the past, Medicare was known as a secondary payor. Because medical bills related to auto accidents were covered under Michigan No-Fault, Medicare did not cover these expenses. And, if Medicare did pay such costs as the result of a billing error, they would generally seek reimbursement.
Nonetheless, under the new No-Fault law, Medicare will pay for accident-related medical services that are covered by Medicare. In addition, the injured person may be responsible for co-pays, deductibles and any services that Medicare does not cover. It should be noted that Medicare is entitled to a lien, or reimbursement, from the proceeds of any claim you may have against the at-fault driver.
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Why Adhering To Michigans Car Insurance Requirements Is Important
Even if the prices are higher than average, carrying car insurance in Michigan is required. Not all coverages are legally mandated, but adding coverage or increasing your current limits is recommended for most drivers in order to further protect assets. However, if youre worried about an increase in your premiums, it may be time to shop for cheaper coverage. The Zebra is a great place to from the nations top carriers.
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What Steps Should You Take
First and foremost, remember to notify your car insurance company as quickly as possible to apply for the No-Fault insurance benefits because there is a strict one-year time limit. If you plan to file a lawsuit against another party involved or responsible for the accident, there is a three-year limit. The No-Fault law in Michigan can be complex and confusing, especially if there are several parties involved. Hiring a car accident attorney from our law firm, can alleviate the frustrations and clear up confusions amongst involved parties. You can be reassured to receive the proper care and compensation with a member of our legal team by your side.
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Who Is Responsible For Your Medical Bills In An Auto Accident In Michigan
Before we begin to understand who is responsible for paying your medical bills that resulted from a car accident, we have to consider the nuances of Michigan auto law. Michigan is a No-Fault state, which means the state allows any party involved in an auto accident cases to gain benefits from their insurance companies, no matter whose fault it was. If the accident involved negligent driving from the opposing end, please contact contact a Michigan auto accident attorney at Cochran, Kroll & Associates, P.C. who can support your claim and offer professional legal advice. More specifically, if negligence and irresponsible driving led to unforeseen injuries and suffering that put you or someone you know in the hospital. Before you know it, unwanted medical bills begin to pile up. A qualified Michigan car accident lawyer can help.
Negotiation With Your Cob Contractor
Negotiating a settlement with Medicare is difficult and time-consuming. Medicare usually likes to be reimbursed for all of your medical bills if you receive a personal injury settlement. This is also true if your case is decided in court or through a type of alternative dispute resolution.
Typically, your COB contractor will send you a statement detailing all of your medical bills after they receive your lawyers notification of the settlement. If the information in the statement is correct, your lawyer will try to negotiate with Medicare and then they will send a check to cover the expenses from your settlement amount before disbursing the rest of the settlement to you. While you do not have to accept what the COB says, the appeals process is complex and time-consuming, and you must follow the Medicare internal appeals process.
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Michigan Personal Injury Protection Choices
Medicare enrollees can elect to keep the unlimited coverages on their auto policies. If seniors keep unlimited medical coverages, the auto insurer will pay for the services that Medicare would not cover. Seniors can purchase lower than unlimited levels of PIP medical coverage: $250,000 or $500,000 per person per accident of coverage.
What Coverage Options Are Available Tomedicare Recipients
A variety of medical coverage options are available to Medicare recipients under the new No-Fault law. They may keep their previous unlimited Personal Injury Protection medical coverage. Or, they can choose one of the limited PIP medical coverage options of $500,000 or $250,000. Additionally, policy holders enrolled in Medicare Parts A and B can opt out of PIP medical coverage entirely. To opt out, the policy holders spouse and any resident relatives covered by the policy must have their own qualified health coverage that covers auto accident injuries.
Qualified health coverage includes enrollment in both Medicare Parts A and B, or a health care plan that does not exclude or limit coverage for accident-related injuries.
This can include private health insurance or a different Michigan No-Fault policy with PIP medical coverage. Furthermore, the annual individual deductible for the health care plan must be $6,000 or less.
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Before And After: Residual Bodily Injury And Property Damage
This liability insurance pays for legal defense expenses and judgments against you for pain and suffering, and excess economic damage .
Before: You were required to have:
- $20,000 per person who was injured or killed in an auto accident
- $40,000 for each accident for all people injured or killed
- $10,000 for damage your car did dto property in another state
After: The minimum coverage limits for policies issued or renewed after July 1, 2020, will be:
- $50,000 per person who is injured or killed in an auto accident
- $100,000 for each accident for all people injured or killed
- $10,000 for damage your car does to property in another state
You have the option to buy higher amounts of liability insurance.
Here’s a look at how costs were divided for a typical car insurance policy in Detroit, prior to July … 1, 2020
Before And After: Personal Injury Protection
This coverage pays for your own medical expenses no matter who caused the car accident.
Before: Prior to the new auto insurance law, you were required to have unlimited lifetime medical benefits for PIP, which would cover your car accident medical expenses for life. PIP also pays for other expenses, like lost wages if you cant work because of an accident or replacement services for tasks you cant do, for up to three years after the accident.
After: Here are the coverage options youll be able to select for PIP:
- Unlimited coverage per person per accident. This is the same coverage as before the reforms, under which reasonable and necessary medical expenses are paid for your entire lifetime.
- Up to $250,000 in coverage per person per accident.
- Up to $500,000 in coverage per person per accident.
- Up to $250,000 in coverage per person per accident with exclusions. If you select this option, some or all drivers on your policy can be excluded from PIP medical coverage, if they have qualified health coverage. For example, your health insurance cannot exclude auto injuries from coverage and the deductible cannot be more than $6,000.
- Up to $50,000 in coverage per person per accident. You will need to be enrolled in Medicaid and meet other eligibility requirements to qualify for this option.
- No PIP: Opt out. You will need to have Medicare Parts A & B and meet other eligibility requirements to select this option.
