Michigan Supreme Court; Docket No. 77380; Published
Opinion By Levin; 5-2 (with Archer and Cavanagh Dissenting)
Michigan Reporter Official Citation: 428 Mich 270; Link to Opinion 
STATUTORY INDEXING:
Standards for Deductibility of State and Federal Governmental Benefits [§3109(1)]
Veterans / Military Benefits [§3109(1)]
Coordination with Other Health and Accident Medical Insurance [§3109a]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this 5-2 Opinion by Justice Levin, the Supreme Court held that medical care provided to a member of the armed services pursuant to 10 USC 1071, et seq, is a benefit provided under the laws of the federal government and is thereby required to be subtracted under the provisions of §3109(1) from no-fault 'medical expense benefits otherwise payable to the injured person, where neither the injured person, his spouse, nor a relative domiciled in the same household own an automobile insured under the No-Fault Act. In so holding, the Court refused to extend its reasoning in LeBlanc v State Farm (Item No. 194), wherein the Court held that benefits paid under the Medicare program may not be offset under §3109(1) unless the insured person voluntarily opted to coordinate no-fault coverages under §3109a.
In deciding the issues presented in the case at bar, the Court noted that plaintiff was not in a class of persons to whom a no-fault insurer was obligated to offer a coordinated benefits policy under §3109a for the reason that plaintiff did not own a vehicle and did not reside with a resident relative who owned a vehicle. Had plaintiff been in such a class, and had he opted not to coordinate his coverages under §3109a, then perhaps the reasoning in LeBlanc would have been applicable and no setoff would have been permitted.
Justices Archer and Cavanagh dissented on the basis of the LeBlanc rationale. They would hold that plaintiff’s military health plan is the same as other types of privately acquired health coverages and therefore constitutes "other health and accident benefits” within the meaning of §3109a, and may not be setoff unless the injured person has coordinated coverages under that section.
