Protecting Michigan's Auto Insurance Promise

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CPAN Reaffirms Commitment to Protecting Crash Survivors and All Michigan Drivers as Lame Duck Ends Without Needed Action

LANSING, Mich.—(Dec. 19, 2024)—As the curtains close on another year of legislative inaction to alleviate the suffering of car crash survivors, CPAN today reaffirmed its commitment to continuing to fight for fair auto insurance laws in 2025. 

“Once again, we’re beyond disappointed that lawmakers failed to step up to the plate and do the right thing—not only for current survivors, but for anyone injured in the future,” said Tim Hoste, CPAN president. “We need to be crystal clear—this impacts all Michigan drivers. If you get into a catastrophic accident today, you will not be able to get the long-term care you need. It seems that our lawmakers simply don’t care about quality care.” 

Because of the nearly 50% cut in reimbursements for catastrophic care included in the 2019 no-fault reform package, long-term care providers are losing millions of dollars every year and can no longer afford to take new patients. A study by the nonprofit public health institute MPHI found that as of April 2022, the reimbursement cut had led to more than 7,000 patient discharges, the loss of more than 4,000 health care jobs, and the closure of 24 businesses. And most tragically, at least 15 people have died.

Senate Bills 530, 531 and 575—sponsored by State Senators Mary Cavanagh, Sarah Anthony and Jeremy Moss—were passed by the Senate on Oct. 19 last year, receiving bipartisan support. The bills offer narrow fixes to elements of the 2019 auto insurance reforms that have devastated the state’s post-acute care industry, which includes residential rehabilitation, in-home health care, case management and other services for people who need long-term care.

However, as this year’s lame duck session came to a close, the bills died in the state House of Representatives, where they did not receive even a hearing. Since the Senate bills were passed, at least 6,123 people have suffered serious injuries in car crashes, according to numbers from the Michigan State Police.

“I want to sincerely thank the state Senate for its leadership and for doing everything it could to move this issue forward,” Hoste said. “This is not a Republican issue or a Democrat issue—this impacts every single person who gets into a vehicle in our state. Michigan was once the national standard for helping crash survivors with catastrophic injuries. We look forward to continuing to work with both parties to pass a narrow fix that restores that reputation in 2025.”

Scott Swanson