More than 1,500 accident survivors have lost care so far due to no-fault auto insurance law, study finds

More than 1,500 accident survivors have lost care so far due to no-fault auto insurance law, study finds

A study by health research firm Michigan Public Health Institute found far-reaching impacts of the new state no-fault auto insurance law – just months after steep cuts in premiums took effect. payments to caregivers.

More than 1,500 Michiganders suffering from catastrophic injuries have lost all or part of their care due to changes in the law, according to the study, and more than 3,000 people have lost their jobs.

On July 1, the state’s new no-fault auto law imposed drastic cuts in payments to businesses and families caring for catastrophically injured car crash survivors.

Payments have been cut by almost half, and in many cases providers are now reimbursed for services well below the actual cost of care.

Other findings of the study include:

  • 263 (96%) organizations reported that their services had been affected by the payment reductions.
  • 140 (51%) Had to significantly reduce services / products
  • 96 (35%) Cannot accept new patients with auto insurance financing
  • 30 (11%) had to discharge patients
  • 21 (8%) Had to close operations completely

Even more worrying for the future, of the 89 companies that said they were not yet covered by the law, more than half said they would not be able to serve patients with funding from the law. auto insurance within 12 months.
That’s because most healthcare companies have depleted their funds for rainy days at an alarming rate, said Tom Constand, president of the Brain Injury Association of Michigan.

He said the law broke a contractual promise of quality life care under survivor insurance policies. In many cases, they had been receiving this care for decades.

“To have this care withdrawn retroactively is more than unfair,” Constand said. “It’s inhumane.”

Numerous bills, sponsored by Republicans and Democrats, have been introduced in the House and Senate to lay down the law. So far, Republican leaders have resisted pressure from advocates, caregivers and survivors to grant a hearing to one of the bills.

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