Michiganders receiving catastrophic care services worry of cuts under new auto insurance fees

New fee schedule to go into effect July 1, could reduce reimbursement from insurance companies up to 45%

New auto insurance fees kick in July 1
New auto insurance fees kick in July 1

LANSING, Mich. – On Wednesday, a bipartisan, bicameral group of 77 legislators is signing onto an amicus brief.

The brief states that they did not expect the changes to Michigan’s no-fault auto insurance law would be retroactive.

Lawmakers’ offices are being deluged with complaints from those worried that on July 1, they will have no critical care. That’s because a new fee schedule goes into effect, limiting what can be charged for those services.

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

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

The brief Runestad and the 76 lawmakers have signed onto seeks to have those already receiving catastrophic care under the current rates be allowed to continue to do so.

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

“I’m facing losing my home,” he said.

The issue is that some of the caregivers would see their salary cut. Starting July 1, a new fee schedule for those services goes into effect, limiting certain services due to a 45% cut in reimbursement from insurance companies for services that aren’t covered by Medicare.

COVID-19 already slimmed the ranks and Woodward doesn’t know if there will be anybody left once a July 1 comes.

Runestad calls what’s happening a glitch in the law that needs a legislative fix.

Gov. Gretchen Whitmer said she’s willing to have a discussion.

“I have indicated to the legislative leadership that I’m open to having a conversation around narrowly addressing some of the rate issues,” Whitmer said.


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