Michigan Senate Bill Would Let More Drivers Skip PIP

LANSING, Mich. — A bipartisan group of seven state senators wants to open Michigan’s no-fault medical opt-out to more drivers, under a bill filed in Lansing on Tuesday, Oct. 14.

Senate Bill 1208 rewrites the part of the Insurance Code that lets some policyholders skip personal protection insurance, the coverage that pays medical bills after a crash. Listed in alphabetical order, its sponsors are Bellino, Cavanagh, Lindsey, McBroom, Outman, Runestad and Theis.

Under current law, a driver can only waive that medical coverage on a policy written or renewed since July 1, 2020, a cutoff drawn by the 2019 no-fault overhaul. The waiver is limited to a qualified person, which the statute defines as someone enrolled in both Medicare Part A and Part B, and everyone else in the household must also have qualified health coverage or their own auto medical benefits.

The bill would erase the 2020 policy date, so the waiver could apply to any auto policy that meets the state insurance requirement.

It would also change how much a health plan deductible can be while still counting as qualified coverage. Today the ceiling is $6,000 per person, adjusted each July 1 by the medical portion of the Consumer Price Index, and only when the change adds up to at least $500. SB 1208 sets the figure at $6,579, moves the calculation to January with the new number taking effect the following July, and keeps the $500 trigger.

Insurers would have to tell customers, in plain view on the paperwork, that a waiver stays in place as long as the driver keeps a policy with the same company or an affiliate, unless the driver cancels it in writing.

One rule stays the same: if a driver’s qualifying health coverage ends, existing law gives that driver 30 days to buy auto medical coverage again or be shut out of those benefits for the gap.

For now the proposal sits with the Senate panel that handles finance, insurance and consumer protection, with no hearing on the calendar. It would need to pass both chambers and be signed by the governor before taking effect.