MI Court of Appeal hears case about how new no-fault law should be applied

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DETROIT, Mich. — Michigan Court of Appeals judges heard arguments on Tuesday in a case about how the state’s no-fault automobile reform law is meant to be enforced, specifically with respect to concerns accident survivors who purchased policies and were injured before the new law came into force. effective July 2021.

The case before Detroit’s three appellate judges was brought by crash survivors Ellen Andary of East Lansing, Philip Krueger of Ann Arbor and the Eisenhower Center, a brain injury rehabilitation clinic, against USAA Casualty Insurance.

Under the new law, which went into effect July 2, 2021, any medical service not already covered by our Federal Medicare Act, which includes home caregivers and transportation to medical services, will not be now reimbursed by insurance companies only at 55% of what they were in 2019. The law also limits the number of hours family members can provide care to just 56 hours per week.

The main question in the case heard on Tuesday is whether or not these changes should apply to those who purchased no-fault insurance policies and were injured before it took effect.

“The central point is the fact that long ago, the plaintiffs in this case purchased no-fault motor insurance policies that would not legally allow the benefit reductions contained in this new legislation to apply,” he said. said George Sinas, attorney for the plaintiffs in the case.

“In other words, plaintiffs have purchased contractual rights to payment for medical benefits without regard to fee schedules and without regard to limitations on reimbursement for attendant care provided by the family.”

A decision from the Court of Appeal could take between 1 month and 6 months from now.

There are approximately 18,000 Michiganders currently receiving medical benefits from their no-fault auto policies.

A report, led by the Michigan Public Health Institute (MPHI) and commissioned by the Brain Injury Association of Michigan (BIAMI), was conducted between September and October 2021.

According to their findings, 1,548 crash survivors have lost access to care since the most recent part of the no-fault reform took effect in July 2021.

3,049 healthcare employees lost their jobs.

96 care companies say they are no longer able to accept patients with no-fault car insurance benefits, while 140 said they had to “significantly reduce” their services.

21 care companies had to close completely.

FOX 17 coverage of the no-fault car reform care crisis
May 17, 2021 — New law could have devastating consequences
June 2, 2021 — ‘We are paying the price with our lives’: FOX 17 extended coverage
June 9, 2021 — Hundreds of survivors protest at the Capitol
June 10, 2021 — Rep. Berman introduces bill to prevent cuts
June 23, 2021 — Lawyers gather again at the Capitol
June 26, 2021 — House approves $10 million fund
June 30, 2021 — Supporters say $25 million isn’t enough
July 7, 2021 — The family is afraid of losing their caregivers
July 23, 2021 — Suppliers begin to close
August 4, 2021 — Patients continue to lose care
September 24, 2021 — Changes Causing Chaos For Survivors
September 27, 2021 — ‘We Can’t Wait ‘ArtPrize Entry Highlights Care Crisis
October 4, 2021 — Demonstration outside SML Shirkey company
October 14, 2021 — Some insurers do not follow the intent of the law
October 27, 2021 — Announcing a new set of bills
January 11, 2022— Report says no-fault reform has created a care crisis
May 18, 2022— After Clinton Co. Court Ruling, Crash Survivors Continue to Push for No-Fault Insurance Law Solution

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