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Auto No-Fault Bill Moves
to Full MI House!

Billion-Dollar Windfall for Insurance Companies Forces Price Controls on Michigan Providers, Offers no Guarantee of Savings for Consumers

On April 23, 2015, the Michigan House Insurance Committee favorably reported Senate Bill 248, legislation that would drastically alter the state's model auto no-fault statute. Among other things, the bill would force health care providers who treat auto accident victims to take less money for their services.                                                 
SB 248 imposes a fee schedule based on Medicare on Michigan's auto no-fault system. This could have devastating effects on chiropractors who treat auto accident victims, as Medicare only reimburses DCs for manual manipulation of the spine (CPT codes 98940, 98941, and 98942). 

Additionally, experts fear that imposing these price controls on health care providers would be devastating to hospitals, trauma centers, and brain injury facilities across Michigan, potentially forcing many to close their doors. 

In exchange, the insurance industry only promises savings for the first two years, after which they can raise their rates. The only real guarantee is that this "reform" legislation will significantly harm injured Michigan auto accident victims, their families, and their health care providers, and will further boost profits of Michigan insurance companies.

Taking away important, fundamental no-fault protections dramatically alters the promises made to Michigan consumers since the enactment of Michigan's no-fault statute in 1973.

The bill now moves to the full Michigan House of Representatives for consideration. Contact your state representative TODAY and ask him or her to oppose Senate Bill 248!

 


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