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'Hail Mary' bill introduced by state lawmaker to fix fee schedule, caregiver cap in no-fault auto insurance reform

House Bill 5125 would simply delay the implementation until July 1 of 2022, giving lawmakers more time to come to a compromise.

LANSING, Mich. — On July 1, changes will be made to Michigan's no-fault auto insurance. That includes a fee schedule for providers, such as rehab facilities, and a cap on home caregiver reimbursement for family members. 

However, many accident survivors, caregivers, and lawmakers want to see a stop to these changes. 

Julie Rogers, (D)-Kalamazoo, introduced House Bill 5125. The bill does not change what was passed in 2019. It simply would delay implementation for another year.

"We only have a week left," said Rogers, "It's really been uncertain what the calendar is going to be, if we're taking things up next week or not. I just dropped a straight bill yesterday. It literally changes the date from 2021 to 2022 to give us more time to figure this out.

The two main components under controversy in the no-fault reform are the fee schedule for rehab providers and a cap on family caregiver reimbursement. The fee schedule would be a 55% cut to providers, such as rehabilitation center for spinal chord or brain injuries. As a result, some providers have said they would go out of business with the loss of funding. 

RELATED: 'I feel helpless': Hundreds rally in Lansing protesting consequences of changes to no-fault auto insurance

"If the new law goes into effect July 1," said Rogers, "It puts a 56 hours per week cap for a family member to provide direct care for their loved one."

Supporters of the no-fault auto insurance reform say the fee schedule reins in overcharging from medical providers and keeps auto insurance rates low.

Three state bills, SB 314, HB 4486, HB 4992 have been introduced that would address the issues. However, none of them have received a committee hearing. 

"It's ultimately up to the chair of the committee, as well as the speaker," said Rogers, "And so, I have encouraged folks to reach out to those individuals who really are kind of the gatekeepers and make their voices heard."

The Coalition Protecting Auto No-Fault (CPAN) issued a statement, saying in part, "CPAN fully supports House Bill 5125, which will delay the implementation of the most devastating elements of Michigan’s auto insurance reform until lawmakers can work together to identify a permanent solution.”  

RELATED VIDEO: No Fault Insurance issues

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