Lame Duck No-Fault Bill Would Treat Uninsured Seniors and Children as Second Class Citizens, Harm Accident Survivors’ Families

CPAN is urging all members to CALL their Michigan lawmakers today and tell them to vote NO on the proposed last-minute Lame Duck no-fault legislation. The proposed bill would cap injury benefits for uninsured children and seniors, limit family-provided attendant care for catastrophic accident survivors and create a biased fraud authority. Yesterday, a very one-sided and irresponsible piece of legislation was pushed forward in the State Capitol yesterday. While the bill has not yet formally been introduced, it would severely damage Michigan’s no-fault auto insurance system by significantly harming our state’s most vulnerable citizens. This will would:
 
Creates a one-sided fraud authority run by big insurance companies.
The proposed legislation would create a fraud authority completely controlled by auto insurance providers. The authority would only focus on investigating fraud committed against insurance companies. Stopping fraud is critical, but the approach must be balanced. When insurance companies knowingly deny legitimate claims and consumers filing fake claims are both equally fraudulent activities that must be addressed.  
 
Limits family-provided attendant care to 56 hours per week
Catastrophic auto accident survivors usually require 24-hour care, seven days per week. Most accident survivors prefer to be cared for by a trained family member who knows them best and cares about them the most. A 56 hour weekly cap would force families to use commercial care providers and have strangers in their home five days a week.
 
Caps care at $400,000 for anyone receiving benefits through the Michigan Assigned Claims Plan.
The Assigned Claim Plan which provides no-fault auto insurance benefits to seniors, children and others who don’t drive and therefore do no have auto insurance policies in their immediate household. Capping care on Assigned Claims benefits unfairly harms some of our state’s most vulnerable people. In addition, studies show that capping no-fault benefits will shift millions of dollars each year from insurance companies onto the taxpayer-funded Medicaid system.
 
This proposal benefits only one interest group – auto insurance companies. There are zero cost savings to drivers included in the bill language and lawmakers supporting the proposal have even publicly stated that the cuts were never about rolling back insurance rates.
 
Help us stop this harmful attack on Michigan’s no-fault system! Call your lawmaker and tell them to vote NO on the lame duck auto no-fault legislation!

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