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Michigan lawmaker presents bill to prevent reimbursement cuts to no-fault auto law

Posted at 11:15 PM, Jun 10, 2021

LANSING, Mich. — A state lawmaker introduced legislation today that would prevent cuts in medical care reimbursement rates for some, taking effect in July.

“Unfortunately, things move very slowly around Lansing. But when typically you're up against a deadline, sometimes things happen,” said State Rep. Ryan Berman.

Advocates for catastrophic auto crash survivors say that changes to the no-fault auto insurance law will drastically limit access to medical care.

The law will shrink the amount insurance companies will have to reimburse those care providers for post-acute medical care for crash victims to just 55 percent of what they were and cap the number of hours that family members can act as caregivers to just 56 hours a week.

RELATED: Hundreds of crash survivors protest upcoming changes to auto no-fault

“Right now there is about 18,000 people or so currently in the NF system that could be impacted; of those we have about 1,600 directly squarely in the middle that could be immediately impacted,” said Tom Constand, president of the Brain Injury Association of Michigan.

“This issue affects all types of industries and people and it...really my solution that's on the table isn't going to affect any of the rate decreases or drops, so it's not going to be raising people's rates or anything like that,” Berman said.

Executive director of Michigan’s Insurance Alliance, Erin McDonough, believes the bill would still allow for bad-actor companies to overcharge.

Erin McDonough fs_QUOTE copy.png
Erin McDonough

RELATED: Local mom shares concerns about no fault insurance changes

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