Since it’s establishment in 1973, efforts have been made to revise and reform Michigan’s no-fault law. In 26 September 2017, House Bill 5013 was proposed in the Michigan Legislature as a part of the on-going efforts. Upon its proposal, House Bill 5013 was supposed to be a way to significantly reduce the rates for vehicle insurance for motorists of Michigan. This, however, had a significant downside. Thorough review of House Bill 5013 revealed so much more.
What the House Bill Would Have Realistically Done
It did not guarantee Michigan drivers a relief from high auto insurance costs. Unprecedented dollar cap limitations would have been authorized for no-fault benefits. The limit was actually set for a lifetime cap of $25,000 and in very rare cases emergency medical care would be limited only up to $225,000. Insurance companies be given authority to substantially control the medical care for a patient.
Legal rights of the patients would have been taken away while insurance companies would have more power on the victim’s claims. Children injured in an auto accident would have been denied lifetime care if their parents purchased an insurance with limited coverage for benefits. This is particularly true if the parents selected the $25,000 benefit cap. Victims of accidents cause by drunk, negligent, and even reckless drivers would be denied coverage claims from the at-fault driver for any uncovered medical expenses.
Benefits for family-provided attendant care would be significantly reduced. Reimbursements for medical care providers who treated auto accident victims would be significantly reduced. Studies showed that it could have increased Medicaid costs to about $150 million yearly after 10 years. Legislative proposals such as House Bill 5013 are one of the reasons why people should be more aware of any law reform proposals. The good news is that House Bill 5013 was rejected by the Michigan House of Representatives held last 2 November 2017.
Could you imagine the nightmare you would have needed to face had House Bill 5013 successfully passed?