Michigan Residents Receiving Catastrophic Care Services Worried About New Car Insurance Fee Reductions

LANSING, Mich. – On Wednesday, a bipartite and bicameral group of 77 lawmakers signed an amicus brief.

The brief says they didn’t expect changes to Michigan’s no-fault auto insurance law to be retroactive.

Lawmakers’ offices are inundated with complaints from those who fear July 1 they will not have intensive care. This is because a new fee schedule goes into effect, limiting what can be charged for these services.

LILY: Michigan car crash victims could lose care under new rules

“From all I can say, the vast majority of these providers are providing good service at a decent price and just cannot absorb this arbitrary cut,” said Senator Jim Runestad (R-White Lake).

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The brief that Runestad and the 76 lawmakers signed seeks to allow those already receiving catastrophic care at current rates to continue to do so.

Brian Woodward has been a quadriplegic since the 1980s after a car accident. Woodward owns his own home and is a contractor at Ford, but cannot continue to do so if his intensive care is no longer available.

“I risk losing my house,” he said.

The problem is that some of the caregivers would see their wages go down. As of July 1, a new fee schedule for these services goes into effect, limiting certain services due to a 45% reduction in reimbursement from insurance companies for services that are not covered by Medicare.

COVID-19 has already cut ranks and Woodward is unsure if anyone will be left after July 1 comes.

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Runestad calls what is going on a problem in the law that needs a legislative solution.

Governor Gretchen Whitmer said she was ready to have a discussion.

“I have indicated to the legislative branch that I am open to a conversation about dealing closely with some of the rate issues,” Whitmer said.

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