AUTO NO FAULT (ANF) REFORM
6/11/2019: Michigan auto insurance reform enacted in Public Acts 21 and 22. These changes apply to policies issued or renewed after July 1, 2020.
Frequently Asked Questions (FAQ)
Auto Insurance Reform FAQ (michigan.gov)
Frequently Asked Questions (FAQ)
Auto Insurance Reform FAQ (michigan.gov)
| 2019-pa-0021.pdf |
| 2019-pa-0022.pdf |
ANF Reform Overview
Michigan's No-Fault auto insurance reform has changed law in significant and substantial ways that will affect every driver and every car accident victim in Michigan. Those changes include:
Resources: www.michiganautolaw.com, www.michigan.gov, sinasdramis.com
- PIP Choice – After nearly 40 years of requiring all drivers to carry “unlimited” No-Fault medical coverage to protect them and their families in case they are injured in a car accident, the law now requires drivers to choose from one of four No-Fault PIP medical benefits coverage levels: (1) $50,000 for drivers enrolled in Medicaid; (2) $250,000; (3) $500,000; and (4) unlimited or no limit. These new No-Fault medical coverage choices become available in policies issued or renewed after July 1, 2020.
- Opt-out of No-Fault medical coverage – Drivers who have Medicare can choose to opt-out of No-Fault PIP medical benefits altogether. However, if they are injured in a car accident, No-Fault will not pay for any accident-related medical bills. The legislative intent behind this change is that these drivers would turn to Medicare for medical coverage for injuries suffered in a car accident. The Medicare/opt-out will become available in policies issued or renewed after July 1, 2020.
- Attendant care – Auto insurance companies will not be obligated to pay for more than 56 hours per week for in-home, family-provided attendant care provided after July 1, 2021. This limitation in the No-Fault law does not apply to attendant care provided by a nurse from a commercial agency or in a residential facility.
- Michigan Catastrophic Claims Association – The Michigan Catastrophic Claims Association (MCCA) will continue to pay for the medical costs of catastrophically injured car accident victims who are claiming medical benefits through a No-Fault auto insurance policy that was issued or renewed before July 2, 2020. However, for policies issued or renewed after July 1, 2020, the MCCA will only pay for a car accident victim’s catastrophic medical coverage only if “unlimited” was the No-Fault PIP medical benefits coverage level selected in policy.
- Medicare-based fee schedule – Starting July 1, 2021, doctors, hospitals, clinics, medical providers and other persons who treat and care for car accident victims will have to conform their charges for services to a new Medicare-based fee schedule.
- Utilization Review – Starting12/18/2020, UR programs must gather sufficient information to enable the insurer to identify overutilized or otherwise inappropriate treatment, product, training, service, or accommodation provided after July 1, 2020 to an injured person who is insured under a policy of no-fault automobile insurance issued under chapter 31 or chapter 31A of the act, MCL 500.3101 to 500.3179 and 500.3181 to 500.3189.
- “Excess” medical expenses – Car accident victims whose accident-related medical bills exceed the relevant No-Fault PIP medical benefits coverage level in the auto insurance policy through which they have made their No-Fault claim will be able to sue the at-fault driver in a third-party tort lawsuit for payment of present and future “excess” medical bills. This will become an issue after the No-Fault PIP medical benefits coverage levels become available after July 1, 2020.
- Michigan Assigned Claims Plan – Car accident victims who must claim Michigan No-Fault insurance benefits through the Michigan Assigned Claim Plan (which is designed to assign car insurance companies to provide benefits to victims who otherwise has no source of insurance coverage) will be subject to a cap of $250,000 on medical benefits.
- Bodily injury liability coverage – Starting on July 2, 2020, drivers will be required to carry bodily injury liability insurance in the amounts of $250,000 and $500,000 that provides liability coverage in the event they cause a car accident that injures or takes the life of another person. However, drivers will have the option to purchase lower limits of $50,000 and $100,000 for this third party car insurance.
- Factors that cannot be used to set car insurance rates – Michigan No-Fault car insurance companies will be prohibited from using the following non-driving-related factors to set car insurance prices for drivers: (1) sex; (2) marital status; (3) home ownership; (4) education level attained; (5) occupation; (6) the postal zone in which the insured resides; and (7) credit score. This prohibition begins July 1, 2020. Significantly, the law does not specifically prohibit the use of territories or a driver’s credit information, credit report or insurance score.
- Mini tort – The maximum recovery amount for car accident-related vehicle damage under Michigan’s mini tort law amount will increase from $1,000 to $3,000 for car accidents after July 1, 2020.
Resources: www.michiganautolaw.com, www.michigan.gov, sinasdramis.com
| anfbrochure.pdf |
| mi_new_auto_ins_law.pdf |
DIFS / Court Updates
| andary_supremecourtdecision_073123.pdf |
| difs-bulletin_2022-17-ins_andaryrebilling.pdf |
| difs_bulletin_202138ins_101121_feescheduleclarificaton.pdf |