Crash victims cannot simply ‘move on;’ legislators must hold insurance companies accountable to ensure savings for consumers
Crash victims cannot simply ‘move on;’ legislators must hold insurance companies accountable to ensure savings for consumers
Hutchings: ‘This is not the end of this fight’
LANSING, Mich.—(March 17, 2022)—CPAN, the consumer protection organization fighting for fair insurance laws, today said it would continue its fight to end the 45% cut in catastrophic care passed as part of auto insurance reform, despite House Speaker Jason Wentworth saying a fix was off the table for the remainder of the legislative calendar.
In a statement to media, Wentworth said it was “time to move on,” citing alleged “savings” realized from 2019 auto insurance reform.
“Crash victims cannot simply ‘move on,’” said Devin Hutchings, CPAN president. “Patients across the state are suffering, and families trying to care for their injured loved ones are left with little options for assistance. They are physically and emotionally exhausted. CPAN has been working in earnest with lawmakers to find bipartisan solutions to this crisis and have made every effort to focus on narrow fixes of the law. This is not the end of this fight—we will keep telling these stories and working toward a fix.”
Meanwhile, drivers in communities like Detroit continue to be victims of redlining and other discriminatory practices, Hutchings added. According to The Zebra, Detroit has the highest auto insurance rates of any city in the nation, with Dearborn and River Rouge also making the top 10.
“Michigan drivers are not seeing ‘savings’—in fact, insurance premiums increased in 2021, and the state continues to have the second highest premiums in the country,” he said. “Any ‘savings’ are clearly going directly into the pockets of auto insurance executives. The only way Michigan drivers will ever truly see savings is by holding auto insurance companies accountable.”
According to a recent report from the nonprofit health organization MPHI, as of October 20, 2021, 1,548 no-fault patients have been discharged by their previous providers and 3,049 Michigan jobs have been eliminated since a 45% cut in catastrophic care went into effect in July 2021. Meanwhile, 140 organizations reported having to significantly reduce services, 96 organizations can’t accept new patients with no-fault insurance funding, and 21 organizations have had to cease operating completely, devastating Michigan’s system of post-acute care and overburdening a healthcare system already strained due to the pandemic.
“Undoubtedly, more patients have lost their care, some have died, more businesses have closed and more workers have lost their jobs since October of last year,” Hutchings said. “The healthcare crisis is far reaching.”