Major Insurance Changes Now In Effect For Those Seriously Injured In Michigan Auto Crashes

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A massive change in Michigan’s new auto insurance law goes into effect Friday.

The change means those seriously injured in car crashes may have to start paying the price of Michigan auto insurance reform.

Under the revised law, accident victims who require long-term care are subject to a 45% reduction in insurance payments.

Lawmakers accepted the move in an attempt to help lower premiums.

New legislation sent to the governor creates a $ 25 million fund that would allow rehabilitation facilities and home care providers to seek help, but caregivers say that would not cover the losses.

In 2019, lawmakers responded to Michigan’s highest auto insurance premiums by passing a law giving drivers the flexibility to choose their level of injury protection, replacing the state’s requirement that drivers buy. unlimited lifetime coverage. The overhaul also reduced reimbursements for health care providers who treat accident victims and may charge auto insurers much more for the same services than what is paid for through employer plans or public insurances.

More than 6,000 patients will lose care if the fee schedule is not changed, according to a survey of more than 110 post-acute care facilities commissioned by the Michigan Brain Injury Provider Council. The survey also indicated that 90% of establishments expect a total of around 4,000 job losses.

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