Michigan's $400 auto-insurance rebate came at a price

August 11, 2022, 4:38 PM


Opponents of the 2019 cap placed on Michigan's unlimited medical benefits for catastrophic car crash victims argued it would leave vulnerable people in the lurch. Those fears have borne out, according to a new survey commissioned by the the Brain Injury Association of Michigan and conducted by the nonprofit Michigan Public Health Institute.

From The Detroit News:

A survey released Thursday argues the toll of a key change to Michigan's no-fault auto insurance reform has been the elimination of at least 4,082 health care worker jobs and the discharge of 6,857 patients.

The study also found 10 businesses had closed and 14 are considering doing so in the next year — a fallout medical providers attribute to the historic 2019 reform meant to address Michigan's highest-in-the-nation auto insurance costs.

The survey of 209 medical providers ... was conducted between March 9 and May 15 and tracked losses since a 45% fee cut for medical providers — a key part of the 2019 auto insurance reform package — went into place in July 2021.

On the flip side, the overwhelming majority of Michigan drivers have benefited from at least marginal rate reductions and up to $400 rebates.

Read more:  Detroit News

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