So We Can All Breathe Easy and Have Peace of Mind?
Not exactly… According to C-PAN (The Coalition Protecting Auto No-Fault)
“This delicate balance and the highly respected benefits it affords Michigan drivers are now in serious jeopardy. In the last decade, the insurance industry has launched an attack on the Michigan no-fault system in an attempt to alter the fundamental promise of no-fault in the following ways:
- By winning several important court decisions which have resulted in a substantial loss of rights for injured people; and
- By proposing legislation that would reduce insurance benefits, adopt managed care, impose medical fee schedules, and allow insurance companies to write polices that would pay for only a fraction of the medical expenses suffered by catastrophically injured people.
The need to vigorously oppose these efforts by the insurance company is what led to the creation of CPAN (the Coalition Protecting Auto No-Fault) in 2003. CPAN is fighting on behalf of injured people and healthcare providers throughout our state to keep our model no-fault system intact.”
There are currently two bills that are up for review HB6094 and HB6095. According to experts who strongly oppose these bills, HB6094 would allow drivers to purchase as little as $50,000 in Personal Injury Protection Benefits. The result of that choice will be bankruptcy due to excessive medical bills and would, in effect, create a cost shift to Medicaid which will cost taxpayers more because of the need to raise taxes. Bankruptcy would also result from the liability suffered if you are the “at fault” driver.
The Michigan Catastrophic Claims Association, which is funded by drivers for drivers, with NO contributions from the insurance industry spends approximately 700 Million each year for the services needed for catastrophically injured Michigan citizens. Why allow a cost shift by the very profitable insurance industry onto taxpayers via Medicaid??
The question is this: Unlimited Medical Benefits, as we have known for 37 years, or a $50,000 limit?? Would you want the bankruptcy that would surely follow? How about very limited benefits under Medicaid; which is already breaking the state budget? If you are paralyzed, you often need 24 hour care. Medicaid does not provide that. This bill would inevitably, cost nearly 1 million healthcare jobs.
Michigan drivers are entitled to receive FULL DISCLOSURE at the point of sale for an insurance policy, elaborating on the need for full coverage and the risks associated with limited coverage.
In short- HB6094 promises to raise taxes, cost healthcare jobs, reduce access to medical care, increase insurance premiums due to the greatly increased need for more liability coverage for all drivers, and it also increases litigation for Michigan citizens- which is the antithesis of the intention of the current Michigan No-Fault Insurance model.
Is all of this of this suffering for Michigan citizens worth it because the insurance companies want even greater profits?? The 1973 legislature was genius to design the current system which serves Michigan citizens who are accident victims. Not a single driver is impervious to such a misfortune. What would you want?
Experts continue to explain that the second proposed bill, HB6095, is nothing short of an attack on the Health Care industry and its employees who serve and provide care for injured Michigan citizens. Annually, insurance companies collect approximately 12 billion in premiums from 7.2 million insured vehicles. With only an estimated 1400 Michigan citizens crossing the threshold of the MCCA each year at $460,000, for a cost of $644,000,000 and remaining insurance claims of which 95% are less than $50,000, there is plenty left over for insurance companies- which averaged 21% profitability in 2006. (See the Jay Angoff report at www.CPAN.US)
Even with the current state of No-Fault provisions, insurance companies are wrongfully denying claims and forcing care providers to litigate, making them wait years for payment on services rendered. How much more profits do insurance companies expect to squeeze from Michigan citizens??
Bill HB6095 proposes to cap in-home services at 56 hours/week or 8 hours/day, for 37 years. Doctors regularly prescribe that their patients receive 168 hours/week or 24 hours/day for the necessary comprehensive care Michigan citizens have been given that benefit- enabling these citizens to achieve the maximum level of functionality and “normality” for daily life. Now the insurance industry wants to cut benefits- even after gaining record profits??
The No-Fault model was designed to serve Michigan citizens and assure timely payment for services necessary for them to experience their maximum potential for quality of life. These are the same citizens who already fund the MCCA. The HB6095 bill is truly a specious proposal.
Please PROTECT, PRESERVE and STRENGTHEN the existing law and provide consumer protection with a proposal of “bad faith” legislation, which would hold insurance companies accountable
