If you have been involved in a catastrophic accident in Michigan and are hoping to recover compensation in a personal injury lawsuit, you should be aware of recent changes in the law.
Back in 2019, Gov. Gretchen Whitmer signed into law a new measure that overhauled the state’s no-fault insurance law. the new version of the law, which went into effect in 2021, includes cost controls for victims of catastrophic injuries.
Medical providers challenged the new law, arguing that it should not apply retroactively. Their challenge went to the Michigan Supreme Court, which agreed. In recent decision, the high court ruled that the new cost controls don’t apply to the almost 15,000 people whose motor vehicle accidents happened before the law was changed.
However, people who suffered catastrophic motor vehicle accidents after July 2021, when the law went into effect, will be affected by the cost controls.
If you experienced the accident before that date, you will retroactively receive lifetime, unlimited medical coverage at full rates and there will be no cost control on the treatment that you received because of the accident.
Exactly what does the law say?
The law orders medical providers who treat people who have survived catastrophic injuries to decrease their fees by 45%. It also renders catastrophic accident survivors exempt from a cap of 56 hours for in-home care to treat the person with the injury.
In response to the fee cut, some providers shut down their practices. Others dropped some patients or said that they may have to drop some patients.
It is important to note that in light of the law, people who suffer from catastrophic car accidents in the future may not receive refunds for the Michigan Catastrophic Claims Association. The refunds were directly related to the medical cost controls in the past.
Getting the help that you need
If you have experienced a devastating motor vehicle accident on one of Michigan’s roads, you are not alone. According to a report by the Michigan State Police, there were over 312,000 accidents that occurred since 2018. Of that number, almost 1,000 fatalities occurred and over 75,000 injuries. Whether your injury is life-threatening or not, it can change your life in ways that you may not even imagine.
It can take a toll on you financially and emotionally. You may also lose your vehicle and may lose time from work because you are recovering from your injury. Of course, that also means a loss of income (even if it is temporary). There is also a possibility that you may need more intense medical treatment because of your injury (such as surgery). If you have had such a devastating experience, you can rely on support to help you through the experience.