A $400,000 cap auto injury benefits will shift millions of dollars in insurance industry costs onto taxpayers

Severe auto injuries can cost hundreds of thousands in the first week alone. Just because the injury benefit is capped doesn’t mean the need for care will go away. Studies have shown capping injury benefits will shift millions of dollars in costs from insurance providers onto taxpayers. ¬†Eventually, our most seriously injured will end up on government-funded programs like Medicaid.

Cuts to attendant provided care will harm Michigan’s most seriously injured accident victims

The family -provided attendant model is cost-effective and allows an injured person to receive care from those who know and care about that person the most. The hourly rate cap will cause many families to hire commercial nursing care, which is significantly more expensive for the no-fault insurers than paying family or household members to provide care.

Catastrophically injured people often require 24 hours a day attendant care and cumulative total amount of daily care beyond24 hours. Under this bill, care will be capped at 56 hours per week, or 8 hours per day! The only way these injured people can receive payment for attendant care is by going through the undefined and unexplained “medical review” process, which creates uncertainty regarding whether they will be able to receive the amount of care that they require.

This bill creates a biased and weak Fraud Authority

While reducing fraud is an important, we need a balanced fraud authority. Insurance companies regularly and knowingly deny legitimate insurance claims. Michigan needs a balanced fraud authority with representation from the health care provider community. In addition, the Fraud Authority proposed in the bill has no actual power. We need a Fraud Authority to conduct true criminal investigations regarding actual acts of fraud.

This bill puts insurance company profits over actual people

Nothing in this bill guarantees reduced rates for drivers. These changes are only benefiting auto insurance companies’ bottom lines at the expense of accident survivors and health care providers.

Contact your legislators today and tell them to vote against this bill!

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