Whitmer touts new refunds – InsuranceNewsNet


“Access to care continues to be a priority for me and my administration, we will continue to use whatever is in our toolkit (so) it remains.”

Govt. Gretchen Whitmer

BIG RAPIDSMichigan Govt. Gretchen Whitmer say it $400 Per-vehicle auto insurance reimbursements will help families across the state, as checks are expected to reach drivers in the coming weeks.

Whitmer, speaking to Grand Rapids Community College Monday afternoon said refund checks are made possible by from michigan Motor insurance reform 2019. Bipartisan insurance changes allowed drivers to Michigan to opt out of the highest tier of coverage if they wish, opening up more categories of coverage at lower prices.

“Hard-working Michiganders deserve laws, policies and investments that make their lives easier and ensure everyone will succeed,” Whitmer said.

In November, Whitmer requested the refunds, saying the Michigan Catastrophic Claims Association Fund the excess had reached $5 billion since the 2019 reforms. Under the old state insurance laws, drivers’ insurance bills from Michigan contained surcharges intended to support the fund, which has assets of more than $27 billion.

The MCCA announced in December that it would issue refunds, with the full amount sent to Michigan the drivers being $3 billion. Checks are expected to reach drivers in the coming weeks, and insured drivers are not required to take any action to receive refunds. Insured motorcycles and recreational vehicles are also covered by reimbursements, but cars with “historic vehicles” plates will receive reimbursements of $80.

Anita Foxstate director Insurance Department and financial services, said drivers who do not receive checks by May 9 should contact their insurance agents to ensure that all of their information is correct.

Concerns about caring for accident victims

The MCCA fund provides coverage for those who have suffered catastrophic injuries in car accidents. Under previous insurance laws, accident victims would receive unlimited medical coverage for life for injuries sustained in the accident – their auto insurance provider would be responsible for the first $550,000 in processing, the rest would be covered by the MCCA fund.

The 2019 reforms gave drivers the option of continuing to pay for full MCCA cover or opting for less comprehensive and cheaper cover.

But mandatory funding for rehabilitation services for victims of catastrophic accidents was removed in the 2019 reforms. July 1, 2021service providers can bill insurance companies for up to 55% of costs not covered by Medicare.

Accident victims and caregivers say the new reimbursement cap has resulted in a loss of non-hospital related services, such as attendant services, which many accident victims rely on. Accompanying services may include assistance to people who have lost some or all of their mobility in car accidents.

According to a Michigan Institute of Public Health survey of organizations providing care for accident victims, more than 3,000 jobs – or 26% of the total jobs for which MPHI received data – were cut by care providers after the reforms took effect . More than 1,500 patients – about 9% of the patients taken into care by the investigators – had to be discharged.

Of the organizations surveyed, 96% said the 55% reimbursement cap affects services.

Whitmer and Fox said Monday they were working to ensure that crash victims still have access to quality care.

“Access to care continues to be a priority for me and my administration, we will continue to use whatever is in our toolkit (so) it remains,” Whitmer said.

She said the 2019 reforms were designed to target from michigan high insurance rates – the average insurance rate in Michigan was almost $700 higher in 2018 than the national average insurance rate.

A bill tabled in the Michigan House in January by Rep. Phil GreenR-Millingtonincrease the Medicare reimbursement cap to 200% and increase the reimbursement cap for Department of Veterans Affairs 150 percent service. The bill was returned to the House Committee on Insurancewhere he awaits an audience.

Contact Arpan Lobo at [email protected].

“Access to care continues to be a priority for me and my administration, we will continue to use whatever is in our toolkit (so) it remains.”

Govt. Gretchen Whitmer


Comments are closed.