We should be grandfathered ‘- InsuranceNewsNet

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A Sheaths woman would like to make people aware of this that of Michigan The no-fault law reform, which entered into force in July, could affect injured victims of car accidents that occurred before the new law was passed in 2019.

Govt. Gretchen whitmer signed the bipartite no-fault auto insurance reform legislation (Public Acts 21 and 22 of 2019) May 30, 2019 to provide insurance coverage options, lower rates for Michigan drivers while retaining the country’s highest benefits and strengthening consumer protection.

that of Jody Nagy her husband, William, was seriously injured in 2017 while riding his motorcycle tricycle in North Carolina. Jody is 65 and William is 70.

William is currently in an electric wheelchair and requires 24-hour care due to his catastrophic injuries (spinal cord, brain injury, right leg amputation, right brachial plexus injury).

“I gave up a job I had been doing for 25 years. I was forced to stop to take care of him,” she said. “My income went from $ 24/ hour plus benefits up to $ 12. “

The Nagys went to the capital in Lansing to Tuesday September 28 to protest against the result of the no-fault law which entered into force on 1st of July.

“This law set my husband back several months. The claims adjuster thinks he is God. In fact, he’s a bully. Within months, they took away physiotherapy, occupational therapy, massage therapy, care services and reimbursement of essential medical prescriptions to name a few, “Jody said.” All of these services were ordered by his doctors and all of them have letters of necessity. They also show how beneficial these services are and how they impact her daily life. “

While on Capitol Hill, she said she was upset because they couldn’t speak with State Sen. Ken horn, who was informed of their presence. They were also unable to speak with the state. Senator Mike shirkey. She sent a letter expressing her concerns to senators.

“These lawmakers have to live in a box because they don’t understand the anxiety, depression and uncertainty they have created for everyone affected by this law,” she said. “I agree that there has to be some level of reform in the laws, but it goes too far. It’s ridiculous. Shame on all the lawmakers who decided this was going to solve a problem. They have it. caused a lot more. “

There’s no Michigan no-fault grandfather clause for the new law. Auto insurers could take advantage of the absence of a clause by using the reform’s coverage restrictions and its arbitrary fee schedule.

Jody said she was disheartened when conversations with lawmakers about the new law did not go as she had hoped. She admits that she and William will be okay with the reform, but she expressed concern and sadness for others who might not be so lucky due to their pre-existing medical condition from a previous car accident.

She said that at the time of her husband’s accident, their insurance company told them that if they didn’t sue the other party, her husband would have lifelong medical care.

“We should have acquired rights,” she said. “I’m sure a lot of people are against that too.”

The Nagys have been back and forth with insurance companies and medical providers. She said reimbursement for the drugs had been refused. “They don’t care,” she said.

New Michigan faultless, effective law July 1, 2021

The following hypothetical situations illustrate how devastating the absence of a grandfather clause in Michigan’s no-fault law can be for victims, according to legal experts at michiganautolaw.com.

Before the reform law that was passed in 2019, suppose a catastrophically injured car accident victim received 24/7 attendant care prescribed by a doctor (168 hours per week), provided at home by her husband. he was paid $ 12.25 per hour (barely more than the Labor office statistics rate) which came out at $ 294 per day.

Under the reform law, the price list entered into force July 1, 2021, reduce the husband’s attendant care hourly rates by 45% for $ 6.74 per hour.

In addition to this, the victim’s husband would only be entitled to compensation for 8 hours per day because under the reform law, car insurance companies are only required to pay 56 hours per week for care. home helpers provided by the family. It all comes down to $ 53.92 per day – down $ 240.08 per day from the pre-No-Fault reform.

The resulting scenarios include one or more of the following with the absence of a grandfather clause from Michigan’s no-fault law:

The victim and her husband suffer financial ruin because he no longer works outside the home and because the insurance will no longer pay him adequately or in full for the attendant care he provides to his wife.

A commercial nursing agency may be required to provide the remaining 111 hours per week of attendant care prescribed by a physician. The feasibility of this option is uncertain given that once the price list comes into effect 1st of July many home health care organizations would no longer provide attendant home care. Additionally, given the declining reimbursement rates under the fee schedule, it is likely that the quality of attendant care available will be lower than what is needed – and what was available prior to the fee schedule. reform.

The victim may be forced to leave their home and enter a residential care facility (if applicable, continue to operate once the fee schedule goes into effect July 1, 2021) if arrangements cannot be made to ensure that she can receive the 24/7 ancillary care prescribed to her by her physician at her home.

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