As Auto Insurance Lawsuit Progresses, MBIPC Calls on Legislature and Governor to Fix the Disaster They Created

Judd: “It’s clear to anyone who’s been paying attention that the law is cruel, unjust and ineffective”

BRIGHTON, Mich.—(June 7, 2022)—The Michigan Brain Injury Provider Council today again called on House Speaker Jason Wentworth and Senate Majority Leader Mike Shirkey to bring to the floor fixes to Michigan’s auto insurance law, as a lawsuit that would render elements of the law unconstitutional continues to move through the legal system. 

The Michigan Court of Appeals this morning heard arguments in Ellen M. Andary, Philip Krueger, & Eisenhower Center, v. USAA Casualty Insurance Company and Citizens Insurance Company of America. The lawsuit contends that two provisions of the auto insurance law—the 45% cut in catastrophic care and the significant limitations placed on the right of survivors to receive reimbursement for in-home attendant care services provided by family members—violate Michigan’s Constitution.

MBIPC President Tom Judd said that while he welcomed the progress of the lawsuit, the Legislature has the authority to fix the issues with the law immediately.  

“This is a disaster created entirely by the Legislature and Gov. Whitmer, who were warned by survivors, providers and advocates that the law as passed would destroy countless lives, eliminate thousands of jobs and decimate the state’s world-class post-acute care industry,” Judd said. “Sadly, those warnings have proven to be correct—and despite mountains of evidence, Speaker Wentworth and the Senate Majority Leader Shirkey continue to defer to the auto insurance lobby and refuse to allow a good-faith public debate on how we can best protect crash survivors and end this crisis of care, while Governor Whitmer has so far declined to use her bully pulpit to strongly advocate for a fix.” 

To date, legislative leadership has ignored the statistics provided through non-partisan, neutral parties such as ROI Insight, MPHI, and the University of Michigan Poverty Solutions—along with hundreds of news stories—chronicling the disruption of services and displacement of care across the state. Several bills offering a long-term fix to the crisis have been introduced, but none have received a committee hearing or floor vote.

According to the MPHI study, within the first four months of implementation of the fee cap system, over 1,500 crash victims had their care disrupted and over 3,000 Michigan health care workers lost their jobs. Those numbers continue to rise.

“It’s up to the courts to determine if the new law is unconstitutional—but it’s clear to anyone who’s been paying attention that the law is cruel, unjust and ineffective,” Judd said. “The Legislature can end this farce tomorrow. They should act immediately.”