If you are an employer sponsoring a self-funded group health plan with Michigan residents, join Mary Bauman and Tripp VanderWal for a complimentary webinar on Wednesday, June 26, 2019 at 10 am to discuss the new law, its impact on your plan and an action plan for moving forward.
After reaching an agreement with Governor Whitmer, the Michigan legislature passed significant no-fault reform legislation on May 24, 2019. Governor Whitmer is expected to sign the bill. The law will require employers to educate employees on the new coverage options and so they don’t have any gaps in their combined coverage.
Michigan residents were required to purchase no-fault auto insurance with unlimited medical Personal Injury Protection (PIP) coverage. Michigan drivers experiencing serious injuries in a car accident were assured of comprehensive medical coverage through their auto insurance. However, if a Michigan resident is also enrolled in a fully-insured employer group health plan, that plan is required to pay first, before no-fault provides benefits. Self-funded employer group health plans subject to ERISA (basically all employer plans unless sponsored by governmental or church employers) may either exclude coverage for auto accidents or pay on a secondary basis.
One of the key changes under the law is that residents will now be able to elect a capped level of medical PIP coverage—either $250,000 or $500,000. If a self-funded plan excludes coverage, an employee electing one of the new caps may be without coverage in the event of a catastrophic accident. If the self-funded plan pays secondary, an employee electing one of the new lower caps will shift significant cost to the employer plan in the event of such an accident.