House Insurance Committee Chair Daire Rendon, along with the Michigan House, today advanced impactful legislation aimed at protecting quality care for auto accident victims.
Recent no-fault insurance reforms included a fee schedule for those that provide care to auto accident patients. The measure is set to take effect July 1. Prior to reform, Michigan law did not include cost controls, which led to out-of-control costs for care that was passed onto consumers through higher premiums.
Concerns have been raised over losses care providers may suffer due to the fee schedule structure – and that it could ultimately lessen their ability to care for patients or lead to patients being told they can no longer receive care.
“The goal of no-fault auto insurance reform was lowering costs while preserving top care. This is a continued commitment to those principles,” said Rendon, of Lake City. “We have heard from many residents across the state who have been tragically injured in auto accidents and are concerned that the status of their care providers could change as the law does. While sufficient data does not yet exist to determine how this would play out, we have heard these concerns and are taking a proactive steps to ensure access to care is preserved.
“This will provide people who have been injured in auto accidents and their families with peace of mind going forward.”
Senate Bill 28 would create the Post-Acute Injury Provider Relief Fund, which includes a $10 million investment that deals with providers that claim to be running at a deficit due to the changes. The provider would need to supply key information to state government to access the fund – such as their total number of patients, documentation of billing and any denials by auto insurance carriers, and financial statements detailing deficits.
The Department of Insurance and Financial Services, which will review applications and administer the fund, will also be charged with providing quarterly updates to the Legislature so additional measures can be implemented if needed.
SB 28 advances to the Senate for further consideration.
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