The $50,000 option would be available only to Medicaid recipients who can prove their spouse or another person living in their household has health insurance that covers auto injuries, according to the bill.

Gov. Gretchen Whitmer said just a week ago that she opposed lowering PIP coverage to anything less than $250,000.

"Zero coverage is not an option," Whitmer said May 16 in Dearborn.

But the pact Whitmer forged with GOP leaders in the Legislature will allow motorists to buy far less than $250,000 of coverage if they have a qualified private health insurance plan.

Crain's previously reported on how the Personal Injury Protection opt-out will likely shift financial exposure for auto injuries to health insurance policies of private and public employers.

The various levels of Personal Injury Protection motorists could purchase under the legislation would contain mandated reductions, ensuring it "guarantees rate relief for every Michigan driver," Whitmer said in a statement.