Home » No adjustments to auto insurance coverage regulation this time period

No adjustments to auto insurance coverage regulation this time period

LANSING, Mich. (AP) — Payments supposed to repair a Michigan regulation that slashed auto insurance coverage funds for crash survivors’ post-acute care are lifeless for the time period, a key lawmaker stated.

Home Speaker Jason Wentworth, a Farwell Republican and backer of the 2019 regulation, stated Wednesday that he spent a yr proposals.

“All of them both transfer us backward towards the previous establishment or put the financial savings and refund checks for Michigan drivers in danger,” he stated in an announcement. “At this level, it is time to transfer on.”

Legislators from each events within the GOP-controlled Legislature have launched measures to alter the regulation, which final July curbed or lower what hospitals, residential care amenities and residential suppliers can cost automotive insurers for care.

Reimbursements for post-acute companies that don’t have a Medicare code have been diminished by 45%. Affected companies embody care in grownup foster houses, attendant care in houses and transportation.


The regulation, which additionally made it optionally available to purchase limitless private harm safety advantages beginning in mid-2020, is a significant purpose why $400 per-vehicle refunds are being issued to all insured drivers due to a $3 billion surplus in a fund that reimburses insurers for medical claims above $600,000. However critics say folks critically injured in crashes are dropping care and entry as a result of their caretakers can not face up to the 45% lower.

Tom Judd, president of the Michigan Mind Harm Supplier Council, stated Wentworth “caved” to the insurance coverage business with out holding a listening to on the problem.

“What Speaker Wentworth is doing is akin to strolling away from the scene of an accident with smoke smoldering and crash victims writhing in want of assist,” he stated, vowing to redouble efforts to finish what he known as a disaster for suppliers and crash victims.

Gov. Gretchen Whitmer, a Democrat up for reelection, final yr urged lawmakers to make adjustments earlier than the reimbursement reductions took impact however has additionally touted the refunds and pushed for them to come back earlier.

She and legislators later put aside $25 million for post-acute suppliers that may present deficits brought on by the adjustments, although it has been criticized as insufficient. The state insurance coverage division, which has gotten six functions, has not made any funds to this point.

One lately launched bipartisan invoice is sponsored by 58, or greater than half, of the 106 Home members — together with greater than 1 / 4 of the Republican caucus.

“The unwillingness to work on common sense reform payments is unethical, and it fails our constitutional duties as representatives of the folks of Michigan to guard public well being,” Rep. Rachel Hood, a Grand Rapids Democrat, stated Thursday.

The insurance coverage business stated the 2019 regulation is working by reining in overcharging by medical suppliers, curbing fraud and letting motorists choose PIP protection that matches their finances. The Insurance coverage Alliance of Michigan stated extra drivers are shopping for insurance coverage for the primary time or the primary time shortly as a result of it’s extra reasonably priced.

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Observe David Eggert at https://twitter.com/DavidEggert00