New auto insurance reform laws in Michigan are negatively impacting thousands of people in the state who are living with catastrophic car accident injuries. The new reforms mean that patients who were receiving compensation for medical expenses have had their compensation cut by almost half.
Reimbursements cut by 45%
Just a few months after the reforms, injured patients can already feel the impact. Insurance companies are now reimbursed for 45% less medical care than they were before. For a patient that requires ongoing physical therapy and other long-term medical care for a serious injury, this budget cut may put their recovery at a standstill.
Wheelchair-bound patient asks to be grandfathered into old program
One man who suffered devastating injuries in a motorcycle accident talked to local news about his situation. He said that he thinks patients like him should be grandfathered into the old program since it’s what he paid into.
After colliding with a truck while riding his motorcycle, the man’s injuries included a leg amputation, broken bones and brain injuries. He requires 24-hour care from medical professionals as well as physical therapy and massage therapy. However, with the new reforms, he will receive far less care. Lawmakers say that they are waiting to analyze more data before making a decision about changes to the reforms.
Michigan no-fault insurance
Since Michigan has a no-fault insurance system, every injured party in a car accident is compensated for their injuries regardless of causation. However, there are circumstances where a person’s injuries are so devastating that insurance benefits are not enough to cover their medical expenses. In this case, the injured car accident victim may decide to sue the at-fault driver for additional compensation.