CPAN Encourages Legislature to Pass Rep. Rogers Bill that Will Improve Utilization Review Process
CPAN Encourages Legislature to Pass Rep. Rogers Bill that Will Improve Utilization Review Process
Hoste: Bill is a good first step; lawmakers must also fix the 45% cut in care and family-provided attendant care cap
LANSING, Mich.—(June 29, 2023)— CPAN, the coalition fighting for fair auto insurance laws, today thanked State Rep. Julie Rogers (D-Kalamazoo) for her introduction of a bill that would improve Michigan’s utilization review process and help crash survivors get the care their doctors have prescribed.
“Michigan’s current utilization review process is weighted too strongly in favor of insurance companies, which means crash survivors are too often denied necessary care,” said Tim Hoste, president of CPAN. “This bill will ensure the process is fairer and more equitable to all parties. CPAN thanks Rep. Rogers for her continued leadership and support of Michigan’s most vulnerable residents.”
Utilization review, which was included in the 2019 auto no-fault reform package, lets auto insurance companies scrutinize the level of care prescribed by providers. While it was intended to lower costs for consumers, some auto insurers have taken advantage of the review process to deny reimbursement for needed care.
Introduced by Rep. Rogers, HB 4884 will establish that generally acceptable and appropriate standards are employed throughout the process and will increase transparency and fairness for insurers and providers.
“The care crisis facing Michigan automobile crash survivors worsens every day and we must begin to address the consequences of the 2019 auto no-fault law now,” Rogers said. “A majority of my colleagues in the Michigan House of Representatives agree and co-sponsored my bill, HB 4884 which provides a framework for making decisions on appropriate care through the utilization review process. By ensuring that the care and treatment of patients follow generally accepted standards as determined by medical professionals and developed by experts using evidence-based guidelines, patients will receive the care they need.”
Hoste added that the utilization review is just the first step toward fixing the 2019 auto insurance law. A study from the nonprofit public health institute MPHI found that as of April 2022 the 45% cut in catastrophic care and 56-hour per-week cap on family-provided attendant care included in the 2019 law had caused:
Nearly 7,000 patients to be discharged from care;
The loss of more than 4,000 health care jobs, and;
The closure of more than 30 businesses.
“Auto insurance reform has simply failed on its major promises,” Hoste said. “Premiums are still too high and crash survivors are being denied the care their doctors are prescribing—care they were promised and paid for. It’s long past time for the Legislature to revisit this law and make necessary improvements for the benefit of crash survivors and all consumers.”
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CPAN is a broad bipartisan, Michigan-based coalition whose mission is to be the consumer advocate for auto insurance policyholders, those who have been injured in a motor vehicle crash and the medical providers caring for them, representing them at the Capitol, in the courts, and in the public forum. For more information, please visit www.CPAN.us.