Disability Network/Michigan Urges Quick Passage of Bills to Protect Accident Victims’ Access to Vital Rehabilitative Care

Legislation offers narrow fix to auto insurance law while preserving lower costs 

BRIGHTON, Mich.—(April 28, 2021)— Disability Network/Michigan, a statewide nonprofit that serves as the collective voice of Michigan’s 15 Centers for Independent Living, has urged the Legislature to act immediately on two bills that will protect access to rehabilitative care for thousands of residents who have been severely injured in auto accidents.

Senate Bill 314, introduced by Senator Curtis Hertel, Jr., of East Lansing, and House Bill 4486, introduced by Rep. Doug Wozniak, of Shelby Township, provide a narrow and technical fix to an unintended consequence of the 2019 auto insurance law: a fee schedule 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 whatsoever.

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 throwing patients and families into disarray. 

Disability Network/Michigan sent letters to Michigan legislators to express its “deep concern over the access to care current and future victims will have for their recovery, rehabilitation, health and productivity.” The organization mobilizes around issues that will have the greatest impact on delivering high-quality, independent living services to people with disabilities. 

“There is little doubt that a 45% reduction in reimbursement rates for quality programs that provide these essential services will drastically impact care for thousands of vulnerable citizens with disabilities,” Disability Network/Michigan stated in its letter. “Some will have their rehabilitation abruptly interrupted, while others will be displaced out of specialized, accredited programs that have been their home for years.”

Both of those scenarios could be avoided, the letter went on to say, if the Legislature passes SB 314 and HB 4486 “in an expedited manner.”

The Michigan Brain Injury Provider Council, which represents health care professionals and facilities that care for people with severe brain injuries, recently conducted a statewide survey to measure the potential impact the non-Medicare fee schedule would have. The results were dire: a staggering 86% of post-acute care facilities have no or very little confidence that they

can continue to operate their businesses. That means roughly 6,000 patients expected to lose care if their providers are forced to close, and some of these patients are too severely injured to be cared for at home. 

These patients, among the most vulnerable, may be left with no place to go after July 1, said MBIPC president Tom Judd.  

“We are grateful that Disability Network/Michigan has joined the growing chorus of voices calling on the Legislature to take quick action on this looming crisis,” Judd said. “There is no shame in righting a wrong. HB 4486 and SB 314 would protect access to care without adding any costs to the system. We don’t have time to wait.”