What changes have Michigan already made to no-fault car insurance?
Personal injury protection also covers other expenses for up to three years after the accident, such as lost wages if you are unable to work. With the car insurance changes implemented last year, for the first time, Michigan drivers could choose the amount of no-fault medical coverage to buy with their car insurance.
How does cutting prices impact care facilities?
As part of the reform package, a new fee schedule only covers rehab services that have been assigned codes by the U.S. Centers for Medicare and Medicaid Services. Those fees are generally covered by Medicare in hospitals. So that means the biggest impact will be on specialized rehabilitation programs, which often do not take place in hospitals.
The victims’ care is paid for by the Michigan Catastrophic Claims Association through the per-vehicle annual fee that all Michigan drivers were assessed for.
Some care providers are concerned that 45% price cuts mean they’ll have to close, and told patients to look for other arrangements even before the law went into effect. Others have merged with different providers. Care providers also warn that these closures will result in a severe lack of specialized residential rehab centers or in-home care providers for auto accident patients.
Will the new car insurance law lower premiums?
The new no-fault car insurance change in Michigan could reduce premium costs. But, it can also mean less accessible rehabilitation services, medical procedures, and specialized programs for survivors of serious car accidents.
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