One Year Later, Michigan’s Catastrophic Care Crisis Continues Unabated; Voters Are Taking Note

Judd: Legislators have received all the information they need to act

BRIGHTON, Mich.—(June 30, 2022)—With July 2 marking the one-year anniversary of the start of the Michigan catastrophic care crisis, the Michigan Brain Injury Provider Council (MBIPC) today reiterated that ending the 45% cut in catastrophic care is the only way to ensure that current crash victims—as well as anyone who is seriously injured in the future—get the care they need.

“One year later, it’s shocking and shameful that the Legislature has failed to take action,” said Tom Judd, president of MBIPC. “Michigan’s leaders have received all the information they need to act—hard numbers showing the devastating quantitative impact on patients and providers, heartbreaking stories from frightened survivors and exhausted families, and even research showing that the new auto insurance law hasn’t reduced auto insurance premiums as promised. The data is in, and the results are clear—the law is a disaster and people are suffering. We need real leadership.”

Thousands of Michigan victims of devastating car accidents were plunged into chaos after a government-mandated 45% cut in reimbursements for specialized care went into effect in July 2021, as part of the fee schedule in Michigan’s new auto insurance law.

Patients with severe injuries, like those to the brain and spinal cord, are winding up in hospital ICUs as the ongoing rehabilitative care they’ve relied on to maintain lives of dignity and independence is ripped away. Providers, including those in rural areas where care options are already scarce, are being forced to close their doors because they can’t survive the fee schedule’s nearly 50% pay cut, leading to layoffs of more than 3,000 frontline workers.

Judd noted that independent organizations such as MPHI and the University of Michigan Poverty Solutions—along with hundreds of news stories—have chronicled the disruption of services and displacement of care across the state. Meanwhile, at least 27 counties have passed resolutions calling for the Legislature to take action to protect crash survivors.

“This is a humanitarian crisis born from a government-mandated price fix, and only the legislature can undo it,” Judd said. “Voters—whether they’re liberal, conservative, or somewhere in-between—have been watching, and polling overwhelmingly shows that they demand a fix. They will make their voices heard later this year.”

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Members of the Michigan Brain Injury Provider Council are committed to providing high quality, ethical rehabilitation services, with the mission of achieving the best outcomes for patients. As a trade association established in 1987 and based in Brighton, Michigan, MBIPC offers resource-sharing, information exchange, professional development and education, advocacy for brain injury standards of care and legislation protecting Michigan families, and the promotion of ethical conduct. For more information, go to mbipc.org https://www.mbipc.org, and connect with MBIPC on Facebook, Twitter and Instagram.