I’m happy with my vote to reform Michigan’s auto no-fault system, giving customers alternative on the insurance coverage protection that is sensible for them and reducing the price of insurance coverage all through the state by implementing commonsense measures comparable to a medical supplier payment schedule.
I totally assist the adjustments that deliver consistency and predictability to the insurance coverage market via a reimbursement cap based mostly on the Medicare system. What I don’t assist is a government-mandated value repair that arbitrarily and unjustly requires corporations to cost wildly completely different charges for a similar service.
The brand new legislation requires a flat 45% reduction in prices for sure post-acute providers. Previous to the auto insurance coverage reform, some care suppliers charged obscene charges after which negotiated funds with insurance coverage corporations, whereas others charged honest charges a lot nearer to what they have been truly paid.
The 2019 reforms — by making everybody minimize their charges by 45% — introduced irresponsible suppliers’ prices down however compelled affordable suppliers to cost unsustainably low costs.
Unhealthy actors that overcharged can keep in enterprise whereas those who charged affordable charges are compelled to downsize or shut totally, disrupting look after susceptible crash victims throughout the state. Legislators didn’t intend to reward the irresponsible brokers of the previous system. We’d like a legislative repair.
Because of this, I launched laws that will have prevented the avoidable disaster in care unfolding earlier than us. As an alternative, the Legislature handed a legislation that makes use of taxpayer cash to supply a aid fund for these corporations being harmed by the legislation.
Whereas I agreed we would have liked to do one thing that would give suppliers an opportunity to exhibit the necessity for a long-term resolution, I finally opposed the ultimate model as a result of the overall quantity of taxpayer cash ballooned to $25 million whereas the Michigan Catastrophic Claims Affiliation fund of greater than $23 billion, which is meant for use for these reimbursements, sits idly by.
I consider this momentary resolution is a governmental overreach, subsidizing the insurance coverage business whereas offering restricted aid to particular person corporations. Now, two months because the implementation of the 55% reimbursement cap, corporations nonetheless haven’t seen a penny of this fund due to the bureaucratic course of crucial to use.
I don’t consider authorities ought to choose winners and losers, and it actually mustn’t spend taxpayer cash when higher options can be found. At present, sufferers’ care is being disrupted, their well being and security are being compromised, and households are being thrown in disarray.
I implore my colleagues to make this subject a precedence. We can’t wait and see what number of lives will probably be impacted and what number of jobs will probably be misplaced because the mud settles from the implementation of the 45% minimize. Weak accident victims deserve the care they paid for. We made an settlement with them, and we should always honor it.
We did an awesome factor for Michigan drivers in 2019 by passing the no-fault reform legislation — let’s ensure we additionally do proper by these injured in an accident and their care suppliers. We are able to do that by acknowledging the necessity after which working throughout social gathering strains to resolve the issue. It’s our obligation to take action, and I’m able to work with anyone focused on attaining an answer that’s simply, honest, and equitable for sufferers and care suppliers.
State Rep. Ryan Berman, R-Commerce Township, represents Michigan’s thirty ninth District within the Legislature. He’s working for state lawyer common.