CPAN Derides One-Sided Lame Duck Auto Insurance BillsLansing – The Michigan Legislature are considering a last-minute bill today that would drastically impact the state’s no-fault auto injury system while benefitting insurance companies.
The bill language includes provisions that would place a $400,000 cap on injury care for individuals receiving benefits from the Assigned Claims Plan, which impacts pedestrians, bicyclist, seniors, children and others who don’t have car insurance or policies in their immediate household.
“CPAN has been pushing lawmakers for balanced and responsible no-fault reforms. This bill is neither of those,” said Coalition Protecting Auto No-Fault (CPAN) spokesperson Josh Hovey. “By capping benefits for those covered by the Assigned Claims Plan, lawmakers would be hurting the most vulnerable auto accident survivors in this state – children and seniors. I just can’t see how anyone would think that is a good idea.”
Previous CPAN studies have shown that capping no-fault injury benefits would shift millions of dollars each year onto the state Medicaid system.
In addition to capping auto injury care for seniors and children, the bill places limits family-provided attendant care to 56 hours per week, despite most catastrophic auto accident survivors requiring 24-hour care.
“These individuals would much rather be cared for by a trained family member who knows them best and cares about them the most,” said Hovey. “Instead, this bill would force commercial care providers onto accident survivors and their families.”
The bill also creates an auto insurance fraud authority that would investigate health care providers that treat auto accident victims.
“CPAN is in full agreement that we need to remove as much fraud as possible from the no-fault system, but the fraud authority created by this bill is completely one-sided. Its board would be completely made up of auto insurance providers and its scope would be limited to only investigating fraud committed against insurance companies,” said Hovey.
CPAN members have provided testimony to lawmakers showing numerous accounts of questionable practices by insurance companies, including an insurance company citing a law that doesn’t exist as a reason to deny an auto injury claim.
CPAN is a broad coalition of health care providers, patient advocates and accident survivors who are committed to preserving Michigan’s model auto no-fault insurance system. For more information, please visit www.ProtectNoFault.org.