Michigan Legislature Amends No-Fault Auto Insurance, Addressing 2019 Overhaul Issues

The Michigan Legislature recently cast a vote aimed at modifying the state’s no-fault auto insurance system. This move comes as a response to the 2019 overhaul which led to a significant reduction in pay for medical providers, causing some to cease providing care to car crash victims. The main objective of the new legislation is to balance the reimbursement rates for these providers while still keeping the insurance costs at bay for drivers.

The spearhead for this initiative is Senator Mary Cavanagh, who has championed the primary bill in the package. The previous reduction in pay had a notable impact, especially on services required by survivors of catastrophic vehicle accidents. In a bid to rectify this, the new legislation, which sailed through the Senate with a 23-14 vote, is expected to address the so-called "crisis of care" in the state, with lawmakers keen on ensuring that the cost-saving benefits of the existing law remain intact.

However, not all lawmakers are on board with the new changes. Some Republican members, like Senator Ed McBroom, have expressed concerns regarding the potential increase in auto insurance costs for drivers. Despite these reservations, the sentiment among many is that this move is overdue, and as articulated by Senator John Damoose, even though the new amendments may not be implemented in time for some crash victims affected by the previous changes, it’s a step towards amending some of the damages caused by the 2019 overhaul, even if some of the consequences are irreversible.