LANSING, Mich. — A massive change in Michigan's new car insurance law goes into effect on Friday.
The change means people who were badly hurt in car accidents could have to start paying the price for Michigan's auto insurance reform.
As part of the revised law, crash victims who need long-term care are subject to a 45% cut in insurance payments.
Lawmakers agreed to this move in an effort to help lower premiums.
New legislation sent to the governor creates a $25 million fund that would allow rehab facilities and in-home care providers to apply for aid, but caregivers say that would fall short of covering the losses.
In 2019, lawmakers responded to Michigan’s highest-in-the nation auto insurance premiums by passing legislation giving drivers the option to choose their level of personal injury protection, replacing the state requirement that drivers buy unlimited lifetime coverage. The overhaul also scaled back reimbursements for health providers that treat accident victims and can bill auto insurers much more for the same services than is paid by employer plans or government insurance.
More than 6,000 patients will lose care if the fee schedule isn’t changed, according to a survey of more than 110 post-acute care facilities commissioned by the Michigan Brain Injury Provider Council. The survey also said 90% of facilities expect a total of about 4,000 jobs lost.
