MBIPC Applauds Swift Action as Senate Approves Bipartisan Package of Bills that Would End the Michigan Care Crisis

BRIGHTON, Mich.—(Oct. 19, 2023)—The Michigan Brain Injury Provider Council (MBIPC) applauded the swift action taken today by the Michigan Senate, advancing a bipartisan legislative package aimed at ending Michigan’s years-long crisis in care that has taken devastating tolls on the physical health and overall well-being of victims of catastrophic auto accidents and their families—a crisis that has also forced the closure of small businesses unable to stay open due to the effects auto insurance reform. 

“For over two years, crash survivors, their family members and support systems, providers of essential rehabilitation services and care, and disability advocates at the state and federal levels have pleaded for a narrow fix to the auto no-fault reform law so that crash victims have access to the care they need,” said MBIPC Executive Director Tom Judd. “This solution is well overdue, but it is never too late to save lives and restore the promise of recovery and care drivers are promised. We appreciate the leadership of Majority Leader Winnie Brinks and the bills’ sponsors: Senators Mary Cavanagh, Sarah Anthony, and Jeremy Moss.”

Bills 530, 531 and 575 will correct critical flaws stemming from auto insurance changes signed into law in 2019. Senate Bill 530, sponsored by Sen. Mary Cavanagh, creates a reasonable and sustainable fee schedule that must be honored by insurance companies when paying post-acute rehabilitative care providers. Post-acute providers offer highly specialized care to patients once they have left a hospital setting.

The 2019 reform bill included a 45% cut in reimbursement rates for catastrophic care and a 56-hour per-week cap on attendant care provided by family members. These unjust and arbitrary provisions have decimated the post-acute care industry, leading to more than 7,000 patient discharges, the loss of more than 4,000 health care jobs, and the closure of 24 businesses as of April 2022, according to an independent study conducted by the nonprofit health institute MPHI.

While the auto insurance industry continues to defend the draconian fee cap system and its devastating impact on crash survivors, offering no acknowledgement of the calamity—even in the face of objective data, media spotlights on personal suffering, and documented deaths—Judd noted that MBIPC and its coalition partners have consistently come to the table to offer solutions.

“We now urge the House to move this solution forward swiftly,” Judd said. “There are no more excuses for further delays.”

Judd added that MBIPC appreciates the forceful commitment key members of the Michigan House of Representatives made at the Rally to End the Crisis in Care held at the state Capitol on October 3.

Detroit Caucus Chair Tyrone Carter said at the rally: “We were told the auto reform would lower costs and we were also told crash survivors wouldn’t lose their care … both lies.” Representative Carter also made statements of commitment including: “I’m proud to support the legislation that is coming out of the Senate.”

House of Representatives Insurance and Financial Services Committee Chair Brenda Carter said at the rally: “We can do better for the people of Michigan,” adding that the “time is now to find the right solutions” to ensure people “get the help and resources they need.”

“Crash survivors need quality rehabilitation and care to maximize their opportunities for recovery, rehabilitation and a life of dignity, health, and well-being. This surely should not be kicked to 2024,” Judd said. “The Governor has repeatedly made public comments expressing a desire to have a solution on her desk. The Senate has delivered—now it is up to the House to deliver this solution and end the crisis in care. Further delays and continued suffering are unnecessary. We appreciate the leadership in the Senate, and we now call on House Leadership to step up and end this sad chapter in Michigan’s history.”