LANSING, Mich. — Michigan's no-fault auto insurance reform law, implemented in 2021, aimed to lower insurance costs but has inadvertently impacted survivors of catastrophic car crashes. Advocates are urging lawmakers to revisit the legislation before the end of the year — asking them to look at MI Senate Bill 530.
The reform law reduced the fee schedules that insurance companies are required to pay out to local care providers for services such as in-home caregivers and medical transport.
Family members are also now capped at 56 hours of caregiving per week.
The rates were cut by 45% compared to rates in 2019, prior to the reform bill being signed into law.
Advocates say the changes are causing dozens of healthcare providers to simply close their doors, while others are unable to take on clients covered via No-Fault.
A state Supreme Court decision in 2023 technically guaranteed full continued support for those who were injured before the reform law was signed into law.
Though, advocates say insurance companies are not all honoring the high court’s decision.
Approximately 18,000 Michiganders rely on medical benefits from their auto no-fault policies purchased prior to 2019.
Advocates argue that the current system puts everyone at risk, particularly those injured after the reform law took effect.
Maureen Howell, an advocate and mother of a crash survivor, emphasizes the urgency: "We've done everything humanly possible over the last three and a half years. ... Everyone is at risk on Michigan roads."
Brian Harrison, executive director of therapy at AdvisaCare, shares a concerning example: "We have a situation in West Michigan where an individual was discharged home without care and is currently alone without accessible means to get out."
Advocates are pushing for lawmakers to take up Michigan Senate Bill 530, which passed the state Senate in October 2023 but is stalled in the House.
The bill aims to address the reimbursement rate schedules and ensure continued coverage for those injured.
With the current legislative session expected to end in December, advocates urge lawmakers to take action as soon as possible.
Howell emphasizes, "We have determined we have a bipartisan majority that will vote for this. ... It's really up to the speaker to bravely stand up and make this happen."
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