LANSING—State Sen. Rick Jones is working on potential legislation that will make auto insurance more affordable for some seniors. Jones’ recently learned that insurance companies require seniors at age 65 to pay more once they are on Medicare, because Medicare has to be listed as a last resort payee for medical coverage.
“Our seniors are being asked to pay more for auto insurance due to a lack of coordination of benefits.” said Jones, R-Grand Ledge. “Other states are able to find a way to coordinate these benefits. It is time we started to do the same.”
Most drivers in Michigan are allowed to use their current medical coverage as the primary payee when they purchase an auto insurance policy, saving them money because the insurance company only has to pay if the amount needed for care exceeds the amount their medical insurance is authorized to pay. However, at age 65 everyone is eligible for Medicare, which due to federal mandates will only help pay for medical expenses if they are a last resort insurer.
Jones has requested legislation that will allow for seniors over the age of 65 a waiver from the Personal Protection Insurance (PIP) requirement, saving them money and allowing them to not be blindsided by federal mandates.