MBIPC Applauds Rep. Berman for Introduction of House Bill 5870, Which Cracks Down on Insurance Company Delay and Deny Tactics

MBIPC Applauds Rep. Berman for Introduction of House Bill 5870, Which Cracks Down on Insurance Company Delay and Deny Tactics

Judd: Bill will hold insurance companies accountable for acts of bad faith

BRIGHTON, Mich.—(March 3, 2022)—The Michigan Brain Injury Provider Council (MBIPC) today applauded State Rep. Ryan Berman for introducing House Bill 5870, which cracks down on the ability of insurance companies to delay and deny claims—a bad-faith practice which has compounded the growing #MICareCrisis.

MBIPC President Tom Judd said Rep. Berman should be commended for listening to providers, analyzing the evidence of the problem, and drafting legislation to deal with insurance company games that jeopardize the rehabilitation, recovery and care of car crash survivors.

“Prior to the implementation of the 55% reimbursement cut for crash victim care, people with catastrophic injuries, their families, and their caregivers foretold of the pending catastrophic care crisis,” Judd said. “What was unexpected was the degree to which insurance companies would simply stop paying for services completely. Across the board, medical providers and other service providers have been dealing with escalated delay and deny tactics since July 1, 2021. With the introduction of HB 5870, Representative Berman has said ‘enough is enough!’, standing up for a just system in which insurance companies must act in good faith to pay in a reasonable time frame.”

Representative Berman is a long-standing ally of car crash victims, recognizing the problems of the auto no-fault reform law and not being shy about working towards solutions. In addition to HB 5870, Representative Berman previously sponsored a bill that provided a viable solution to the fee cap system that has essentially cut off care for car crash victims. Unfortunately, that bill, like many others, never got as much as a hearing.

Judd added that while he appreciated Representative Berman’s bill to hold insurers accountable for practices of bad faith, the catastrophic care crisis will continue if there is no fix to the funding cut that leaves providers of care unable to continue with their operations because the reimbursement level is less than the cost of labor. The numbers of people losing care will continue to grow as the number of providers unable to provide the needed services expand, he said.

“The brave and resilient people of Michigan that overcome the most horrific car crashes deserve a just system that supports their care providers in a timely and equitable manner,” Judd said. “HB 5870 helps with the timely payment—now it is up to the Legislature to act on it, as well as pass viable solutions to ensure reasonable reimbursement for the rehabilitation services and care crash survivors so desperately need and deserve.”