Michigan Auto Insurance Reforms: Impact on Access to Specialized Care for Traumatic Brain Injury Victims

In a significant development for Michigan’s auto insurance system, State Senators Sarah Anthony (D-Lansing) and Mary Cavanagh (D-Redford Twp.) have recently introduced a series of legislative measures. These bills are aimed at reforming the state’s auto insurance system and ensuring improved access to care for individuals who have suffered severe injuries in car accidents.

These legislative changes come in response to concerns stemming from amendments made to the first-party personal injury component of Michigan’s no-fault auto insurance system back in 2019. These amendments introduced limits on reimbursements for attendant care provided by family members and established provider fee schedules.

While the Michigan Supreme Court has ruled that these changes do not affect individuals injured prior to the enactment of these amendments, advocates argue that they continue to pose obstacles to access for those injured after the law was signed in 2019 by Governor Gretchen Whitmer.

State Representative Mary Cavanagh underscores the pressing need to address access to care, ensuring that survivors of auto accidents receive specialized care while upholding the promise that every Michigan driver has access to suitable care in the event of an accident.

The proposed bills, Senate Bills 530 and 531, extend upon the 2019 legislation by seeking to improve the affordability and accessibility of post-acute and home care services, while also addressing limitations in home care. These proposed changes include the establishment of uniform rates among providers, the introduction of a new non-Medicare fee schedule, the creation of a “fair and reasonable” rate structure for specialized care, requirements for accreditation of home care agency providers, and the expansion of options for family-provided care.

What’s particularly noteworthy in this context is the impact these legislative changes will have on outpatient mental health and rehabilitation facilities. Life Skills Village serves patients with Traumatic Brain Injuries (TBIs) who require specialized care. These patients will continue to need access to care, and the proposed bills play a crucial role in ensuring that access.

Senator Sarah Anthony emphasizes that this bill package aims to support not only auto accident survivors but also facilities like us at Life Skills Village. It reaffirms the commitment to providing high-quality, affordable care to Michigan drivers involved in accidents, including those with TBIs who rely on specialized care.

These bipartisan bills have been referred to the Senate Finance, Insurance, and Consumer Protection Committee, which Senator Mary Cavanagh chairs. The Michigan Health and Hospital Association and the Michigan HomeCare and Hospice Association have expressed their support for these bills, underscoring the need to enhance access to care and reimbursement clarity for auto accident survivors, healthcare providers, and specialized facilities like Life Skills Village. These legislative changes pave the way for a more inclusive and supportive healthcare system in Michigan.