Michigan’s 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 pedestrians and 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 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 premiums again
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.
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