New Study Proves Rights of Crash Survivors Are Being Violated by Michigan’s Auto Insurance Law
New Study Proves Rights of Crash Survivors Are Being Violated by Michigan’s Auto Insurance Law
No-fault reform has caused deaths, hospitalizations and loss of services
LANSING, Mich.—(Sept. 28, 2022)—The latest phase of a longitudinal study tracking the impact of Michigan’s new auto insurance law on patients and providers is the latest piece of evidence proving that the rights of crash victims are being violated.
“It can’t be said enough—what’s happening to these individuals is not only legally wrong, it’s morally wrong,” said Devin Hutchings, president of CPAN, the organization fighting for fair insurance laws. “Crash survivors were guaranteed lifetime care—care that they paid for through their premiums and their contracts with their insurance companies. This report is further proof that as a state we’ve broken our promise to thousands of our most vulnerable residents. That’s shameful.”
The study, which was released yesterday by the Brain Injury Association of Michigan (BIAMI) and conducted by the Michigan-based public health institute MPHI, found that since the 45% cut in catastrophic care and 56-hour per-week cap on family provided attendant care went into effect in July 2021:
Six survivors had died
78% reported a loss in services
42 patients reported hospitalizations directly related to changes brought by reform
In a major victory for survivors of catastrophic crashes and their loved ones, the Michigan Court of Appeals in August ruled that benefit reductions passed as part of 2019 auto insurance reforms could not be applied retroactively. However, that decision has been appealed and is expected to ultimately end up in the Michigan Supreme Court.
Hutchings noted that the survey also found that 20 percent of respondents said they were forced to apply for Medicaid assistance.
“Ultimately, Michigan’s auto insurance law is shifting the cost of care away from insurance companies and onto the backs of taxpayers,” Hutchings said. “The data is clear and overwhelming—the only winners in auto insurance reform are insurance companies and their fat cat executives.”
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CPAN is a broad bi-partisan, 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.