Part of the 2019 Auto Reform Bill has been ruled unconstitutional by Michigan’s Supreme Court, but what does that mean for drivers across the state?
The auto insurance repeal that’s been in the spotlight over the past four years reduced catastrophic care reimbursements, cutting benefits for 18,000 patients.
Many injured people who need constant medical care either had less access or lost it entirely when providers went out of business.
Four years ago, the Michigan Legislature and Gov. Gretchen Whitmer came together to reduce auto insurance premiums. But the bill hasn’t entirely passed muster with the Supreme Court, or even drivers, as costs are still high and going up.
Now, the part of the bill that reduced care costs for those injured prior to July 2019 has upended.
Barry Cargill, of the Homecare and Hospice Association, called it an important ruling for him and thousands more.
“It certainly is a big day for the home care providers out there, the medical providers who provide essential services to these catastrophically injured patients,” Cargill said. “But the real victory is for the catastrophically injured.”
Chalisse Wilson is responsible for caring for her brother, Clarence -- a person with quadriplegia after a 2008 car accident.
“It’s been devastating -- financially, emotionally, it’s been mentally draining,” Wilson said.
Her brother is on a ventilator and needs 24-hour care, some of which he’s had to go without, causing Wilson to have to pick up a lot of the slack. She is overjoyed at the Supreme Court’s ruling.
“There is no longer the worry that the home care agency may call me at any day and say we can’t continue to do this because we can’t sustain it,” Wilson said. “It means the world.”
The Insurance Alliance of Michigan had a vastly different take. Here is its statement:
Today, the court let down consumers across Michigan and opened the floodgates for overcharging for medical procedures and higher rates. You can’t reasonably expect to save Michigan drivers money while obliterating a key cost-control measure like the fee schedule. What medical providers charge for services and prescribe for care, above and beyond what’s medically necessary, can be controlled and has proven to reduce the cost of auto insurance.
Insurance Alliance of Michigan
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August 06, 2023 at 07:51PM
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Part of Michigan's high-profile auto reform bill ruled unconstitutional: What that means for drivers - WDIV ClickOnDetroit
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