MI-SERA

Chair Talk

June 2020

By Bob Kopasz

MEDICARE AND NO-FAULT AUTO INSURANCE

I have been researching this issue extensively to try and provide some direction/suggestions to SERA members and retirees who are on Medicare as to what decisions you will need to make by July 1st when this law goes into effect. I looked (and listened) to the following:

State of MI Dept of Insurance and Financial Services (Bulletin 2020-05-INS) issued and entered 10th day of February, 2020 By Anita G. Fox, Director
Medicare & No-fault or liability Insurance (Who pays first?) publication
Hantz Insurance rep.

Basically, what I have learned is that if you are injured as a result of an auto accident your no-fault or liability insurance pays first (primary) and Medicare pays second for services related to the accident or injury. Doctors/Providers must try to get paid from the no-fault insurance company before billing Medicare. If the insurance company doesn’t pay the claim promptly (120 days) the provider may bill Medicare. Medicare may make a conditional payment to pay the bill, and then later will recover the payment after a settlement, judgement, award, or other payment on the claim has been made. (You are responsible for making sure Medicare gets repaid from any settlement, judgement, award, or other payment).

In talking with Michael Basmajian (Hantz) last week he stated that if someone was to reduce their Personal Injury Protection insurance amount he would not reduce it below $500,000.

What I have written above is basically what I have read in both the Dept. of Insurance and Financial Services Bulletin and the Medicare publication as well as talking to Michael.

I am not going to advise you as to what decision you should make. You should talk to your Insurance agent and/or a Hantz rep.

I am going to continue paying the premium for unlimited coverage on my Auto Insurance for the simple reason that I (and my wife) feel more comfortable with the knowledge that we have that coverage.

Editor’s note: Bob Kopasz is Chair of the Michigan SERA Council. He may be reached at P.O. Box 692, Mt. Morris, MI 48458; phone 810/240-8380.


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June 2020 By Bob Kopasz MEDICARE AND NO-FAULT AUTO INSURANCE I have been researching this issue extensively to try and provide some direction/suggestions to SERA members and retirees who are on Medicare as to what decisions you will need to make by July 1st when this law goes into effect. I looked (and listened) to the following: State of MI Dept of Insurance and Financial Services (Bulletin 2020-05-INS) issued and entered 10th day of February, 2020 By Anita G. Fox, Director Medicare & No-fault or liability Insurance (Who pays first?) publication Hantz Insurance rep. Basically, what I have learned is that if you are injured as a result of an auto accident your no-fault or liability insurance pays first (primary) and Medicare pays second for services related to the accident or injury. Doctors/Providers must try to get paid from the no-fault insurance company before billing Medicare. If the insurance company doesn’t pay the claim promptly (120 days) the provider may bill Medicare. Medicare may make a conditional payment to pay the bill, and then later will recover the payment after a settlement, judgement, award, or other payment on the claim has been made. (You are responsible for making sure Medicare gets repaid from any settlement, judgement, award, or other payment). In talking with Michael Basmajian (Hantz) last week he stated that if someone was to reduce their Personal Injury Protection insurance amount he would not reduce it below $500,000. What I have written above is basically what I have read in both the Dept. of Insurance and Financial Services Bulletin and the Medicare publication as well as talking to Michael. I am not going to advise you as to what decision you should make. You should talk to your Insurance agent and/or a Hantz rep. I am going to continue paying the premium for unlimited coverage on my Auto Insurance for the simple reason that I (and my wife) feel more comfortable with the knowledge that we have that coverage. Editor’s note: Bob Kopasz is Chair of the Michigan SERA Council. He may be reached at P.O. Box 692, Mt. Morris, MI 48458; phone 810/240-8380.
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