What’s changing and how we got here
In January 2019, Governor Gretchen Whitmer signed the No-Fault Auto Reform bill into law. The intent of the law was to lower auto insurance rates, however, that savings comes at a great risk and unimaginable expense to some. The first phase of the law went into effect last summer which ended the requirement for insurance covering unlimited, lifetime medical care to those involved in catastrophic automobile crashes. The next phase is scheduled to go into effect on July 2, 2021 with new fee schedules, which will significantly impact ongoing health care services for auto crash survivors. Under the new fee structure, reimbursement to health care service providers will be cut by 45% for all non-Medicare coded services.
Many people who sustain catastrophic injuries such as brain injury, spinal cord injury and amputations, require in-home health care for the rest of their lives; these services are very expensive. A 45% reduction in reimbursement rates for these essential services will harm providers and the patients they serve. A recent statewide survey revealed that more than 6,000 catastrophically-injured patients will lose their care and nearly 5,000 health care workers will lose their jobs.
Currently, there are bills in the Michigan House (House Bill 4486) and Senate (Senate Bill 314) which propose changes to fix these medical fee schedules before they go into effect. While July 2 is fast approaching, the bills are still in committee and not yet scheduled for a vote.
