SB 248, Disastrous for survivors of accidents and a windfall for big insurance.
Lawmakers, whose campaigns were heavily financed by big auto insurance companies, have introduced a bill that would have disastrous consequences for survivors of auto accidents in Michigan. While proponents claim this bill will lower rates, there is no guarantee of that and big insurance stands to increase its profit margin at the expense of the consumer and potentially Michigan taxpayers.
It would also establish an insurance industry controlled “Automobile Insurance Fraud Authority.” A one sided agency meant to investigate the possibility of fraud by the consumer. Yet there are no protections built in to protect the consumer from unfair practices, overreach, and deceit, by the insurer.
SB 248 Will put accident survivors at risk of losing care or having to cover exorbitant medical expenses out of pocket.
- This bill will shift the cost of caring for catastrophically injured individuals onto Michigan taxpayers through taxpayer funded programs like Medicaid.
- SB 248 would put a cap on what home health care professionals would be paid. Home health and rehabilitative care is an unfortunate necessity in many severe car accidents and limiting it to one caregiver at a time, or 24 hours of care a day as the bill proposes, could negatively impact those who have severe spinal and brain injuries.
- The language of this bill would allow for the restrictions on care to apply to current patients not just new patients after the bill has been passed.
- The artificial price controls that would be set on what doctors and hospitals can charge the insurance company for caring for their patients would not only cost hospitals billions of dollars. This will result in a loss of employment for many hospital staff as well as harm the patient relying on Auto No Fault.
The new Michigan Catastrophic Claims Commission creates a great deal of uncertainty for catastrophic accident survivors.
- The current Michigan Catastrophic Claims Association is set up to reimburse insurance agencies for medical claims over $530,000, the liability remains on their books. The new commission or MC3, will be completely responsible for those cost of covering these claims, allowing big insurance to not only clear this liability off of their books but also makes them immune from the responsibility of paying these claims above a new threshold of $545,000. The language forming this new commission does not explain any contingencies in case the MC3 becomes insolvent.
- The MC3 will have a board of 7 members, there are new requirements that any of these board members be actuaries.
- The bill does not have language outlining any of the guidelines or standards the new Commission will follow, specifically standards of fairness. There is no guarantee the new commission will adjust and handle claims fairly.