Yesterday, April 15, 2015, the Michigan Senate Insurance Committee pushed through a bill that could fundamentally change No Fault Insurance law. The bill could come before the full Michigan Senate today! Help make sure seriously injured citizens can get the care they need to recover from catastrophic auto accidents.
Michigan has the best no-fault auto insurance in the country. Your insurance policy makes sure your medical bills will be covered for life if you ever suffer a catastrophic auto injury. But Michigan Senate Bills 248 and 249 would strip away catastrophic and attendant care benefits from our state’s most vulnerable motorists.
The End of the Michigan Catastrophic Claims Association
Right now in Michigan, your no-fault insurance provider is legally required to pay for all reasonable and necessary medical expenses and treatments related to a car accident. If your doctors’ bills go beyond $530,000, a special organization, called the Michigan Catastrophic Claims Association (MCCA) picks up the tab and makes sure you are covered for life.
But if SB 248 becomes law, your no-fault insurance company will only ever have to pay $500,000. That may sound like a lot, but following a catastrophic injury, a patient could use up that benefit in just a few years. This no-fault reform would cut motorists off from the MCCA protections and leave them in the hands of a new organization that has the power to charge drivers directly for its services.
Attendant Care Limits
Your no-fault insurance provider is required to pay for attendant care, by a professional or a family member if your injuries require it. SB 248 would limit your family members to $15 per hour compensation for only up to 56 hours per week, even if you need 24/7 assistance.
If you need a professional, you would only be allowed to receive 24 work hours per day. Any assistance provided by family members will into that number. After the first month you would also have to pay up $200 per month as a copay.
SB 248 also creates an Automobile Insurance Fraud Authority with authority to track, prevent, and help prosecute auto insurance fraud. It targets individuals making false or padded claims against their insurers but does nothing to protect you from the manipulative and deceptive practices of the insurance industry, or from unlicensed insurance providers selling phony insurance.
The Michigan Senate Insurance Committee rushed SB 248 and 249 to vote in less than 24 hours. Catastrophically injured motorists deserve better. They deserve a well reasoned, balanced reform that protects them and makes sure that a car crash does not become a death sentence. But for that to happen you need to contact your Senator today and tell them to vote no on SB 248 and 249.
David Christensen is a no-fault attorney for Christensen Law in Southfield, Michigan. He and his team fight the insurance companies to make sure their clients’ medical needs are provided for. If you or someone you know has been catastrophically injured in an auto accident, contact Christensen Law today for a free consultation.