New legislation aims to fix a problem caused by Michigan’s 2019 auto insurance reform law.
Brain Injury Association of Michigan Director Tom Judd tells us Senate Bills 530 and 531 would create a fee schedule that must be honored by insurance companies when paying rehabilitative care providers.
Judd says changes to the catastrophic coverage rules in Michigan’s auto insurance system that were made with the 2019 law have made it impossible for some care providers to service patients most in need. He calls the new Senate bills “a narrow fix” to the 2019 law.
“It fixes the unintended consequences of the law of 2019,” Judd said. “The intent of the law was to reduce insurance premiums. One can argue whether that’s happened or not. But what it definitely did was cause a problem with access to care. It really caused a crisis in care.”
Judd says since the auto insurance law was reformed in 2019, the association has seen care providers close their doors, reduce who they serve, or dismiss people with the most intense needs.
He is expecting pushback on the new legislation from the insurance lobby, but says changes are needed.
The bills from state Senators Mary Cavanagh and Sarah Anthony were introduced this week.
