Advocates hoping for continued rehab protection in auto insurance coverage reforms

HOLLAND – The government auto insurance reforms passed in 2019 aimed to cut costs for drivers as Michigan had the highest insurance costs in the country.

This expensive cost was caused in part by unlimited life health insurance for catastrophic accidental injuries.

Should a person be seriously injured in an accident, their auto insurer would be responsible for the first $ 550,000 in treatment and the remainder of the cost would be covered by the Michigan Catastrophic Claims Association.

In 2019, auto insurance reforms gave drivers the option of continuing to pay for full MCCA coverage or opting for less comprehensive and less expensive coverage.

With the reforms of 2019, however, a new fee schedule was also created that removes the prescribed funds for rehabilitation services. Car accident victims and carers worry about their inability to get the services they need to deal with injuries sustained in previous accidents.

As of July 1, service providers could charge insurance companies a maximum of 55 percent of the costs not covered by Medicare. Proponents say this would allow access to non-hospital-related services such as B. Restrict escort services for accident victims. Mediation services may include day-to-day support for people who have lost some or all of their mobility in a car accident.

During a virtual press conference on Wednesday May 12th, advocates urged state lawmakers to pass House Bill 4486 and Senate Bill 314 to maintain current coverage of the services.

Amber Marcy, of Saugatuck, is the chairman of the Lakeshore Disability Network, which provides resources for disabled people in Ottawa and Allegan counties. Marcy was involved in an accident in June 1996 and has lived with quadriplegia ever since.

“Even though I’m a quad, I managed to keep myself healthy,” said Marcy. “… This is only possible because I am looked after by my fully comprehensive insurance.”

Marcy said the loss of escort services would affect her ability to work, participate in physical rehab, and volunteer.

HB 4486 and SB 314 have not left their respective committees in the legislature. Mary Whiteford State Representative, R-Casco Township, issued a statement stating that insurers have a duty to maintain their services.

“The most important issue to be resolved is that those who have them are not being deprived of any benefit, and the law ensures it does so by law. It is unfortunate that certain healthcare providers are twisting the fee schedule and telling their clients that this law is being implemented It has been availed of its benefits, “Whiteford said. “I find it very disappointing that half-truths and outright lies are being spread. I made it my business to find a solution that would lower everyone’s car insurance bills while guaranteeing lifelong coverage in writing.

“If someone was injured in a car accident a year ago or 20 years ago and had unlimited lifetime coverage, they are entitled to that coverage. Your contract and the law require that they receive this care from their insurer and the MCCA until it is recover from their injuries or die. “

“The law states that after July 1, 2021, providers must adhere to a fee schedule for the care they provide and end the over-billing practice that has led to runaway cost spikes that have harmed families in Michigan for decades.”

– Contact the reporter Arpan Lobo at [email protected]. Follow him on Twitter @arpanlobo.