Expert: Richard Hixenbaugh - 2/28/2010

Question
Michigan has lifetime medical benefits for an auto injured victim. My adjuster offered me a buy out for my no fault lifetime benefits before the medical expenses reach the threshold amount to qualify for MCCA. I realize this is a savings for the State of Michigan, but may I ask why would the insurance company do this and what do they have to beneit from it. If I have my own medical insurance and do not need Medicare or Medicaid does this possible settlement money have to go into an account set aside? Is it taxable? Little information can be found on the internet pertaining to this subject.

Answer
Hi Kristen,

I am not an attorney. Nor am I specifically aware of Michigan insurance law. However, it would be the insurance comapnythat would be ultimately responsible for any future claim you might make. They are trying to get you to sign a release form in exchange for a specific settlement now in order to avoid a larger claim later.

For more specific info on this related to Michigan, I would suggest you speak to a Michigan attorney. Michigan has certain laws and ruls that are different than anywhere else in the country.

I hope this helps
Richard Hixenbaugh