Fixing No Fault Will Save Lives

Auto No-Fault reimbursement fee schedule became effective on July 2, 2021.  The reform legislation slashed Agency reimbursement by 45%, causing reimbursement to be below the cost needed to sustain an employee to provide care.  Agencies have discharged auto injured patients and closed their agency. Some agencies have continued care but with no assurance of the legislative fix necessary to restore appropriate care.

The Michigan HomeCare and Hospice Association is committed to a reasonable solution to fix the home care (attendant care) reimbursement imposed by Michigan’s 2019 Auto No Fault Reforms.  Previous legislative leaders held up the reforms supported by the strong bipartisan majority of state legislators. 

Auto injured survivors have died, others have been displaced from their homes and jobs because our state legislators passed a law that includes an unsustainable reimbursement fee schedule for home care.

Restoring a reasonable home care reimbursement rate is not a significant factor in the cost of auto insurance. While there are 7 parts of the 2019 auto reform that were aimed at lowering premiums, the Andary decision  only affects 2 of the 7, which only affect the Michigan Catastrophic Claims Association (MCCA) yearly fee of $87, about 3-5 % of an overall policy. The 2 are long term care and family care. The other 5 are Driver’s Choice (2M drivers dropped unlimited PIP), Fraud Prevention Program, increased Utilization Review of Care, Assigned Claims (the $250K cap on uninsured and out of state drivers, passengers, pedestrians and bicyclists), 200% of Medicare Cap on Services with Medicare codes (MRI, etc).

Auto no fault needs to be at the top of the legislative agenda this fall.