Car accident victims and the companies that provide their care are protesting an imminent change in the reimbursement of healthcare providers in the treatment of car injuries and calling for legislative adjustments to the policy before it goes into effect next month.
In 2019, Republican-led Legislature and Governor Gretchen Whitmer voted to overhaul Michigan’s flawless auto insurance system to cut the state’s highest costs and signed bills that were passed with broad bipartisan support.
Related: Average Michigan auto insurance rates are falling significantly, but they are still among the highest in the United States
Part of that change was to allow drivers to choose their desired level of Personal Injury Protection (PIP), which went into effect last summer – but another important part of the deal was setting up a fee schedule for the size of the fees for health care insurance providers in the treatment of car accidents.
In July, insurance company reimbursement for health care benefits for car accident survivors not covered by Medicare will be reduced by 45% under the fee schedule set out in the 2019 Act. This change, say many current post-acute care providers, will either put them out of business or force them to stop providing services to auto-accident patients. And car accident victims fear losing access to quality care.
In the run-up to its entry into force, car accident vendors and victims have hosted virtual and face-to-face press conferences to support legislative changes. Last month, activists organized a “virtual protest” in which thousands of accident survivors, family members and vendors shared their stories via email asking lawmakers to legislate to amend the policy.
Related: Michigan’s new auto insurance law causes excitement and concern
Amber Marcy, a car accident survivor who lives in Saugatuck, said during a press conference in May that thanks to the escort she receives from a flawless insurance company, she can work full time, volunteer and stay active in her community. She fears that the new law will rob her of her independence.
“Yes, the new law says we have lifetime benefits, but we really won’t have benefits if there are no providers,” said Marcy. “Ultimately, people like me and other injured people and car accidents will lose their independence and general health. We will live in nursing homes. We won’t really live. “
Proponents of the change say the reimbursement fee law changes are an important part of the equation when it comes to lowering auto insurance rates. The Insurance Alliance of Michigan estimates that just by reducing the Michigan Catastrophic Claims Association vehicle fee, Michigan drivers saved more than $ 1 billion, excluding the individual saver drivers that could be achieved by choosing different levels of PIP coverage.
A change in the statutory fee schedule for doctors would lead to an increase in MCCA fees and a further increase in fees, the group argues.
“We applaud the legislature to adopt these historic reforms, which will make great strides in combating fraud and abuse, limiting the overwhelming demands of medical providers, and giving consumers a choice in the amount of health coverage in their car insurance. “Erin McDonough, Executive Director of the Alliance of Michigan, said in a recent press release.
Anita Fox, director of Michigan’s Department of Insurance and Financial Services, said drivers are entitled to whatever services are deemed necessary for their medical care, up to the limit of their insurance policy. Individuals should contact their insurance provider if they are struggling to ensure supplies, and the department is available to answer consumer questions when people have issues with access to care or other concerns, Fox said.
Related: What to Consider When Buying Auto Insurance in Michigan
However, it is up to lawmakers to decide whether changes to the law’s fee structure are needed, she said.
“We as a department are getting involved in looking at these issues as much as possible because access to medical care is important,” said Fox.
Many Democratic Legislators and a handful of Republicans have signaled their support for a change in the law. House Bill 4486, sponsored by Rep. Doug Wozniak, R-Shelby Township, and Senate Bill 314, sponsored by Sen. Curtis Hertel, Jr., D-East Lansing, would cap reimbursements for affected providers to their 2019 rates. Another bill, House Bill 4992, was tabled this month by Republican Ryan Berman of the trading community and would implement a market average set each year by the Department of Insurance and Financial Services.
None of the proposals have been put up for consultation in the legislature, and there has been no indication that the Republican legislature leaders are interested in accepting them.
Both House Speaker Jason Wentworth, R-Clare, and Senate Majority Leader Mike Shirkey, R-Clarklake, were closely involved in getting the bill first passed. Shirkey has said that he would like to see the 2019 law fully implemented before looking into any changes.
Several vendors and industry groups have said waiting for the law to go into effect will be too late to save many companies.
Neurorehabilitation provider Hope Network announced last week it was closing its Coldwater location due to the upcoming law change, noting that 10 of the 12 residents at the facility are car crash survivors
“I don’t know where to find services for everyone across the state who will be affected after July 1,” Margaret Kroese, executive vice president of Hope Network, said in a statement.
Wozniak said he believes there will be widespread support for his bill in the legislature when the leadership is ready to take him in.
“I think there is a great concern that there will be no maintenance. We’ve built a great industry, but we can’t keep it, ”he said.
Whitmer wrote in a letter to lawmakers this week that “the clock is ticking” to find a solution to ensure vulnerable residents continue to have access to care.
“With the July 1 deadline for implementing new fee structures and long-term healthcare providers raising concerns about the potential financial impact, time is running out to make any changes necessary to ensure our most vulnerable have access to medical care,” wrote Whitmer. “I am confident that we can review all problems we face and address them together with a sustainable, collaborative solution.”
Michigan Brain Injury Provider Council President Tom Judd said in a statement that he hoped Whitmer’s formal confirmation will result in a resolution.
“We call on Governor Whitmer, Senate Majority Leader Shirkey and House Speaker Wentworth to sit down with auto insurance representatives and those of us who care for victims of catastrophic car accidents,” he said in a statement. “We have the chance to work together to find a solution that will prevent survivors from having a second traumatic event.”
Average car insurance rates have plummeted since the first phase of Michigan’s Auto Insurance Act came into effect, but it is still one of the most expensive places in the country to insure a car.
The Zebra, a national auto insurance comparison site, found in February that auto insurance rates fell 18% nationwide in Michigan and 19% in Detroit, where drivers have historically paid some of the highest auto insurance bills in the country. Michigan’s national average – $ 2,535 per year – was still well above the national average of $ 1,483 per year, and Detroit still had the highest average auto insurance rates in the US, averaging $ 5,072 per year
A recent analysis by Insure.com published in May found that auto insurance premiums in Michigan were down 27% year over year in 2020, with the highest auto insurance premiums.
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source https://collegeeducationnewsllc.com/crash-victims-health-providers-cry-foul-over-impending-change-to-auto-injury-medical-fees/
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