Does my health insurance count as qualified health coverage for Michigan no-fault?
It can. A health plan is qualified health coverage (QHC) if it does not exclude or limit car-accident injuries and its individual deductible is $6,579 or less. That cap, published by Michigan’s insurance department (DIFS), applies to auto policies that start July 1, 2026 through June 30, 2027 (DIFS Bulletin 2026-08-INS, February 2, 2026). Medicare Parts A and B also qualify. One limit: if you are the person named on the auto policy, you cannot use your own Medicare to exclude yourself under the $250,000 choice; Medicare is used for the full opt-out instead. Your proof is a QHC letter from your health insurer or employer, or your Medicare card.
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Written by JP SaintAmour, a licensed health insurance agent. Checked October 2, 2026 against Michigan law and the published bulletins and FAQs of the Michigan Department of Insurance and Financial Services (DIFS). DIFS and the State of Michigan have not reviewed or endorsed this page.
The two-part test
Under MCL 500.3107d(7)(b)(i), a health plan is QHC when both are true:
- No auto-injury exclusion or limit. The plan does not exclude or limit coverage for injuries from a car accident.
- A per-person deductible of $6,579 or less. That cap applies to auto policies that start July 1, 2026 through June 30, 2027; the cap in effect on the policy’s start date is the one that counts (DIFS Bulletin 2023-17-INS, June 22, 2023). It did not move this year because the total adjustment would have been $404, short of the $500 the law requires (DIFS Bulletin 2026-08-INS, February 2, 2026).
The test uses the per-person deductible, not the family total. On family coverage, check that each person has their own deductible; on some HSA plans one person must meet the whole family deductible, so ask for the letter.
Bulletin 2023-17-INS says the test includes any type of individual deductible, in-network or out-of-network, including deductibles reduced by money in a health reimbursement account (HRA). The DIFS agents FAQ (read October 2, 2026) adds that a plan meets part 2 if any one individual deductible is at or under the cap. An insurer may read this more strictly, so count on it only if your QHC letter says the plan qualifies.
Medicare also qualifies. Having both Medicare Part A and Part B is QHC on its own (MCL 500.3107d(7)(b)(ii)); Part A alone does not count. DIFS says Medicare Advantage and Medigap qualify too, because they include Parts A and B. The law sets no age limit, so people under 65 who have Medicare, often because of a disability, qualify the same way. One limit: the named insured (the person named on the auto policy) cannot use Medicare to exclude themselves under choice 4 in the table below (MCL 500.3109a(2)(a)); Medicare is the basis for choice 6, the full opt-out. A spouse or relative with Parts A and B can be excluded under choice 4.
Which PIP choices need it
PIP (personal injury protection) is the part of a Michigan auto policy that pays medical bills, lost wages and household help after a crash. Drivers pick one of six levels for the medical part, called PIP medical. Only the last three depend on health coverage. Below, “named insured” means the person named on the auto policy.
| PIP medical choice | Who can pick it |
|---|---|
| 1. Unlimited | Any driver |
| 2. $500,000 per person, per accident | Any driver |
| 3. $250,000 per person, per accident | Any driver |
| 4. $250,000 with exclusions | Each person excluded must have QHC, and an excluded named insured needs QHC that is not Medicare. Excluded people get no PIP medical; everyone else keeps $250,000. |
| 5. $50,000 per person, per accident | The named insured has Medicaid, and the spouse and every relative in the home has QHC, Medicaid, or PIP medical on another Michigan auto policy. |
| 6. No PIP medical (opt out) | The named insured has Medicare Parts A and B, and the spouse and every relative in the home has QHC or PIP medical on another Michigan auto policy. DIFS says a spouse or other relative in the home who has Medicaid blocks this choice. |
Source: DIFS auto insurance FAQ; MCL 500.3107c, 500.3107d and 500.3109a; read October 2, 2026.
With choice 4, the auto insurer stops charging the PIP medical premium for each person excluded (MCL 500.3109a(2)); wage loss and replacement services stay on the policy. The trade-off: PIP medical can pay for things a health plan may not, like rides to appointments and long-term care, and health insurance stops paying when the plan ends (DIFS auto insurance FAQ).
Plans that often miss
High-deductible plans
2026 Marketplace plans that list an in-network individual deductible above $6,579:
| Metal level | Kent County | All of Michigan |
|---|---|---|
| Catastrophic | 3 of 3 | 4 of 4 |
| Bronze | 23 of 26 | 37 of 40 |
| Silver | 1 of 30 | 1 of 43 |
| Gold | 0 of 21 | 0 of 29 |
Source: my count from the CMS 2026 Marketplace plan file (data as of August 4, 2026), rechecked October 2, 2026; Kent prices are on the Kent County page of Browse Health Plans, the price tool I built. Under the DIFS agents FAQ’s reading (any one individual deductible at or under the cap), a listed plan could still pass, but an insurer may read the rule more strictly; count on it only if the insurer’s QHC letter says so. 2027 plans are not out yet.
Plans that exclude or limit car-accident injuries
Those fail part 1, whatever the deductible. Accident-only, fixed indemnity and hospital indemnity plans are not QHC. VA health care is not QHC; TRICARE and CHAMPVA are (DIFS FAQ; Bulletin 2023-17-INS).
Short-term and other non-ACA plans
In Michigan, a short-term plan lasts 185 days or less in any 365, is issued without underwriting, does not cover preexisting conditions, and does not have to follow certain ACA protections, such as the bans on annual and lifetime limits (DIFS Bulletin 2025-22-INS, October 1, 2025). Short-term and private underwritten plans are not ACA coverage. Fixed-indemnity, hospital-indemnity and accident-only plans never qualify (DIFS FAQs). Any other one qualifies only if its insurer’s QHC letter says so; I never assume one does. A short-term plan ends within 185 days. When it ends, your QHC ends, and if you excluded or opted out of PIP medical, you must tell your auto insurer and add PIP medical or get other QHC within 30 days (MCL 500.3109a(2)(d) and 500.3107d(6)).
How to check yours
Ask for a QHC letter. Health insurers must give one on request; employer plans go through the benefits office. It lists everyone covered with dates of birth and says whether the coverage is QHC. On Medicare, your current Medicare card is the proof.
Read your plan papers. Find the individual deductible, in-network and out-of-network, and check the exclusions for car accidents.
Give the proof to your auto agent. For choices 4, 5 and 6, your auto insurer collects it when you apply and again at every renewal. Your agent or insurer cannot require the letter just to give you a quote. A coordination-of-benefits letter, where your health plan agrees to pay first, is a different document.
Sources: DIFS Bulletin 2023-17-INS and DIFS FAQs, read October 2, 2026. Cannot get a letter? DIFS answers weekdays, 8 a.m. to 5 p.m., at 833-ASK-DIFS (833-275-3437).
Send me the client whose health plan falls short
I started my insurance career in Michigan property and casualty. Today I am an independent health insurance advisor, licensed in Michigan and 16 other states. I do not write auto or home.
- Send me a client whose health plan does not qualify, or who has none.
- I read their plan with them and look for options with no auto-injury exclusion and an individual deductible at or under the cap, usually a Marketplace plan on HealthCare.gov. A lower deductible usually means a higher monthly premium, so we weigh that against what you quote on the auto side.
- A private medically underwritten plan is not ACA coverage and can decline, rate up or exclude a condition. Many are fixed-indemnity or other limited-benefit plans, and DIFS says indemnity plans are not QHC. I treat one as QHC only if the insurer confirms it in a QHC letter.
- With the client’s OK, I let you know when they are enrolled. The client brings you the new insurer’s QHC letter, and the PIP decision stays with you and your client.
Open enrollment for 2027 coverage on HealthCare.gov runs November 1, 2026 to January 15, 2027; enroll by December 15 for a January 1 start (CMS statement, July 31, 2026). A client who switches plans should ask the new insurer for a QHC letter. If that client excluded or opted out of PIP medical and the new plan is not QHC, or there is a gap between plans, the client must tell the auto insurer and add PIP medical or get other QHC within 30 days (MCL 500.3109a(2)(d); DIFS auto insurance FAQ).
Michigan driver who needs an auto agent?
I focus on health coverage. For auto and home in Michigan, I send people to Rench Insurance, an independent agency in Battle Creek.
Qualified health coverage questions
Does Medicaid count?
Michigan law lists Medicaid separately from QHC (MCL 500.3107c(1)(a)), so Medicaid alone does not let you exclude anyone under the $250,000 choice with exclusions. A named insured (the person named on the auto policy) on Medicaid can pick the $50,000 PIP medical level if the spouse and every relative in the home has QHC, Medicaid, or PIP medical on another Michigan auto policy. DIFS says a spouse or other relative in the home who has Medicaid blocks the Medicare opt-out.
Does my spouse’s employer plan count?
It can. The same two-part test applies to employer coverage, including a spouse’s. Ask that employer’s benefits office or the insurer for the QHC letter.
What if my deductible is exactly $6,579?
That meets the deductible part: the rule is $6,579 or less per person for policies starting July 1, 2026 through June 30, 2027 (DIFS Bulletin 2026-08-INS, February 2, 2026). The plan still cannot exclude or limit car-accident injuries.
Does an HSA plan count?
DIFS sets no separate rule for HSA plans. One is checked like any other plan: no auto-injury exclusion or limit, and an individual deductible at or under $6,579 (DIFS Bulletin 2026-08-INS, February 2, 2026). Some HSA family plans have only one combined family deductible and no separate per-person amount; if yours does, ask the insurer how its QHC letter treats it.
What if my health plan changes or ends?
Check again every time your health plan renews or changes, not just when your auto policy renews. If you excluded or opted out of PIP medical and your health coverage ends, or you switch to a plan that is not QHC (for example, one whose individual deductibles are all above $6,579, the cap through June 30, 2027 under DIFS Bulletin 2026-08-INS), you must tell your auto insurer and add PIP medical or get other QHC within 30 days. A crash during those 30 days goes to the Michigan Assigned Claims Plan. After day 30 without either, you get no PIP medical benefits from any policy or the Assigned Claims Plan, and you would owe medical bills that no other coverage pays (MCL 500.3107d(6) and 500.3109a(2)(d)-(e); DIFS Bulletin 2023-17-INS; DIFS auto insurance FAQ). The deductible cap can also change each July 1, and your auto insurer collects proof at every auto renewal.
Who decides if my plan qualifies?
The law sets the test (MCL 500.3107d(7)(b)). Your health insurer or employer states in the QHC letter whether your coverage meets it, and your auto insurer relies on that letter. For Medicare, your Medicare card is the proof. I can read your plan with you, but I do not decide. Believe you have QHC but cannot get a letter? Call DIFS weekdays, 8 a.m. to 5 p.m., at 833-ASK-DIFS (833-275-3437) (DIFS auto insurance FAQ).
Not sure your plan qualifies? Let’s look together
Have your plan’s benefit summary handy. Your insurer’s QHC letter is the proof your auto insurer will ask for.
7 days a week, 8 a.m.–10 p.m. ET. My pay comes from the insurance company, not from you.
More for Michigan: my Michigan page, and 2026 Marketplace prices by county on the Michigan page of Browse Health Plans.
General information, not legal advice. Your PIP choice is made with your auto agent or insurer.