no-fault insurance policy is currently in the works of being reformed. In Michigan, drivers and
passengers injured in a motor vehicle accident are able to receive
no-fault benefits from their insurance companies, meaning victims are able to receive compensation
for their cost of injuries no matter who was at fault for the incident. Both
bicyclists involved in a collision with an automobile are also entitled to these
benefits. In addition, the no-fault law also provides unlimited lifetime
coverage’s for those who need it – victims suffering life-altering
injuries from an accident, such as a
traumatic brain injury or spinal cord injury.
Not only are these benefits helpful to auto injury victims, but also to
the healthcare providers and hospitals who treat the catastrophically
injured. This is because providers receive payment from the insurance
companies for the cost of treatment.
There is currently no standard fee schedule hospitals and healthcare providers
must follow, however due to the fact that every case is different as well
as the resulting injuries, the type of care a patient will require will
be different. Standardizing fee’s and enforcing a limit to treatment
could not only be detrimental to auto accident survivors and their families
but all healthcare providers who provide services to those patients.
Senate Bill 248 Will Change Michigan’s No-Fault Laws
Senate Bill 248 was recently passed by the House Insurance Committee and is going into
vote this Thursday in the House of Representatives. This bill will change
how these costs are regulated.
The Bill calls for a fee schedule that would set price controls on what
doctors and hospitals can charge for treating Michigan car accident victims
and will significantly reduce the benefits catastrophically injured victims
can receive, in particular in-home
attendant care (nursing care).
The Insurance Institute of Michigan claims this bill is necessary to combat
fraud within the health system and help consumers save money on their
auto insurance policies. But don’t be fooled by this claim. This
bill will only help protect the insurance companies, giving them more
power over the consumer and the health care workers who care for people
with life-long accident injuries.
How you may ask? Enforcing limitation on no-fault benefits will allow the
insurance company to keep more money in their pocket while the auto accident
victim who desperately needs the care will not be able to receive it.
Enforcing price controls to doctors and hospitals who treat Michigan car
accident victims will undoubtedly affect the care patients receive. Some
providers may not be able to provide the care or afford to provide the
top-notch care they were able to previously.
So all of this in exchange for what? The insurance companies say they will
reduce insurance premiums, but if you read the fine lines they are only
willing to reduce fees in the amount of $100, one time only, not to mention
that starting June 30, 2018 the insurance companies can start raising
This deal truly is in the best interest of the insurance companies and
not the consumer. Michiganders should be aware that this Senate Bill is
truly taking us for fools and it in your best interest to not let this
bill pass. You can take action today against Senate Bill 248 by contacting
your state representative and urging them to vote no. As a resource, our
Michigan auto accident attorneys have provided a link where you can easily
send a letter to your state representative.
Click Here to send a letter now.