Is Veterans Affairs (VA) coverage, TRICARE, or CHAMPVA considered Qualified Health Coverage?

The U.S. Department of Veterans Affairs has determined that VA coverage is not Qualified Health Coverage (QHC) under Michigan’s new auto insurance law, so consumers may not use VA coverage to exclude or opt out of PIP medical coverage.

DIFS has confirmed with the U.S. Department of Defense that TRICARE and CHAMPVA coverage constitutes QHC under Michigan’s new auto insurance law. Consumers may use TRICARE or CHAMPVA to exclude or opt out of PIP medical coverage. Auto insurers are reminded that they should collect a QHC letter, if applicable, either directly or through their producers, not only when a customer first applies for coverage, but also at every renewal when a customer is relying on QHC to make a PIP medical coverage selection. Insureds may have to contact TRICARE or CHAMPVA to obtain this documentation.

Please see Bulletin 2020-47-INS for more information.