MBIPC fact-checks Rep. Whiteford’s auto no-fault statement

Brain injury professionals correct deep misunderstanding expressed in lawmaker’s press release

BRIGHTON, Mich. —(May 12, 2021)— The Michigan Brain Injury Provider Council (MBIPC), which represents the state’s highly trained professionals who provide specialized brain injury rehabilitation, has fact-checked a statement released by Rep. Mary Whiteford (Casco Township) related to auto no-fault reform. 

In the statement, Rep. Whiteford says: “When someone was injured in a car accident a year ago, or 20 years ago, and had unlimited lifetime coverage, they are entitled to that coverage.”

The truth is that while thousands of injured residents may be “entitled” to coverage, their benefits will be useless unless HB 4486 and SB 314 are passed. Without them, the 45% slash in reimbursement rates for specialized rehabilitation services will devastate access to care, leaving thousands of patients with nowhere to go.

“There’s a lot of misinformation out there, and frankly, it’s being spread by auto insurance lobbyists who are hell-bent on protecting profits for their clients,” said Tom Judd, president of MBIPC. “Without a fix, there will be no providers left in business to offer life-saving care for catastrophically injured residents. The unlimited lifetime coverage survivors purchased will be worthless.” 

In a recent column, Crain’s Detroit Business senior editor Chad Livengood compared accident victims’ auto insurance policies to a warranty offered by GM.

“But what if in the second year of the warranty, the government arbitrarily capped the reimbursement payments for GM dealerships by nearly half and forced them out of business?,” Livengood wrote. “Technically, the customer would still have their warranty. But it's hard to fulfill that warranty when there's no mechanic. That's essentially what the Michigan Legislature and Gov. Gretchen Whitmer have done to some 18,000 Michigan residents who were catastrophically injured in auto accidents, often through no fault of their own.”

MBIPC 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. Meanwhile, there are roughly 6,000 patients expected to lose care if their providers are forced to close. 

“We are willing to meet with Rep. Whiteford—or any other leader—and provide them with clear data that shows the devastating impacts that have already begun occurring and will only intensify once the slash in reimbursement rates goes into effect on July 1,” Judd said. “There is no time to waste. We are calling on Gov. Whitmer, Sen. Shirkey and Speaker Wentworth to show some real leadership and step up their efforts to protect vulnerable victims.”