Auto Insurance Industry Executives Refuse Meeting Brokered by Michigan Senators; Won’t Discuss Solutions to Protect Accident Victims
With less than 45 days until July 1 deadline, profit-focused auto insurance reps brush off good-faith attempt to discuss a solution that avoids loss of care for thousands
LANSING, Mich.—(May 19, 2021)—The Michigan Brain Injury Provider Council, which represents health care professionals and facilities that care for people with severe brain injuries, today called out auto insurance industry executives for turning their backs on accident victims by abruptly canceling a brokered meeting on House Bill 4486 and Senate Bill 314.
Sen. Jim Runestad working with Senate colleagues attempted to arrange a meeting between representatives of the auto insurance industry and post-acute care providers. The negotiations for a face-to-face meeting were held over the course of the week of May 10; unfortunately, the insurance industry refused such a meeting with no explanation provided.
“Survivors of catastrophic auto accidents must face the devastating truth about the challenges of their new life — whether it’s depending on a ventilator to live or relearning to move with assistance — and they do it, one brave step at a time,” said MBIPC President Tom Judd. “Contrast this courage with auto insurance industry representatives, who apparently can’t face the prospect of a civil, focused discussion about the devastating impact this aspect of the law will have on their own consumers and families.”
Judd has called on the Insurance Alliance of Michigan (IAM), the most vocal lobbying group for the auto insurance industry, to come to the table and engage in good-faith talks over how to protect life-saving care for accident victims, rather than relying on misinformation deflecting from the real issues at stake.
“Survivors know what it’s like to be on the brink — they were there on the day of their life-altering accident, and they are almost there again with July 1 just around the corner,” Judd said. “As leaders elected to serve their constituents, Sen. Runestad and his colleagues demonstrated their willingness to step forward and help broker discussions to find a workable solution to an imminent crisis. It’s extremely frustrating, but not surprising, that the insurance industry couldn’t be bothered to show.”
House Bill 4486, introduced by Rep. Doug Wozniak (R-Shelby Township), and Senate Bill 314, introduced by Senator Curtis Hertel, Jr., (D-East Lansing), provide a technical fix to an unintended consequence of the 2019 auto insurance law: a provision that cuts insurance reimbursements for post-acute care nearly in half. The bills do not change any other aspect of the 2019 auto insurance reforms, and in fact bring a consistent fee schedule that lowers the cost to the system.
If allowed to go forward as planned on July 1, 2021, these drastic cuts will force the small businesses serving this vulnerable patient population to close, giving thousands of frontline workers a pink slip and leaving patients and families stranded. The 45% slash will make it impossible for most providers to continue offering a range of services for injury victims, including in-home care, intensive short-term rehabilitation, long-term residential care, and much more – which means that current survivors’ “benefits” will effectively be moot and future accident victims will also lack options for care.
The ripple effect of this unintended consequence of the 2019 auto reform package has consequences far beyond the post-acute care industry, and the following organizations support MBIPC in its fight to pass HB 4468 and SB 314: The Christopher & Dana Reeve Foundation, the Michigan Assisted Living Association, Disability Rights Michigan, the Brain Injury Association of America, Disability Network/Michigan, Michigan Occupational Therapy Association, Michigan League for Public Policy, Michigan Developmental Disabilities Council, and the League of Michigan Bicyclists.