General

A History of Lifetime Benefits in Michigan

For decades, Michigan proudly stood as one of the few states offering automobile accident victims comprehensive, lifetime benefits. This provision was a lifeline, especially for those with catastrophic or permanent injuries, ensuring they received lifetime allowable medical care expenses and attendant care benefits.

Such benefits enabled victims to get nursing and home health care essential for an improved quality of life post-accident. Family members often stepped in, helping with daily tasks such as grooming, transferring, and hygiene, ensuring their loved ones could stay home in familiar surroundings.

Governor Whitmer’s 2019 No-Fault Insurance Reforms: A Synopsis

To provide citizens with insurance choices, reduce insurance costs, and increase liability coverage limits, Governor Whitmer enacted significant reforms to the No-Fault Act on June 11, 2019. While some changes took immediate effect, others rolled out over 2020 and 2021.

One of the most transformative alterations was the restructuring of allowable expenses. With the reforms, medical expenses were benchmarked against Medicare’s payment structure. Moreover, attendant care rates for services not covered by Medicare were determined using a specific formula based on providers’ charges as of January 1, 2019. This also led to a 56-hour weekly cap on payable care by family members from July 1, 2021.

Such changes wreaked havoc across Michigan. Multiple home care businesses shut down due to unfavorable payment rates. Several victims lost caregivers they couldn’t afford independently, pushing many into hospitals or nursing homes.

However, two victims injured before 2019 challenged these changes in the Ingham County Circuit Court, asserting their pre-existing insurance policies granted them lifelong, unlimited benefits. They contended that the reforms were infringing on their constitutional rights.

Despite the trial court siding with the insurance companies, the victims took their fight to the Michigan Court of Appeals. In a 2-1 decision, this court agreed with the victims, establishing that the reforms weren’t meant for those injured before June 11, 2019. Predictably, the insurance sector swiftly appealed.

Michigan Supreme Court Steps In The Verdict

The Michigan Supreme Court, on July 31, 2023, upheld the Court of Appeals’ decision. This landmark ruling decreed that the 2019 reforms could not limit the rights of those injured before the reforms were enacted. The benefits for such individuals reverted to what was guaranteed by their insurance policies and laws at the time of their injury.

Implications and What It Means Going Forward

1. Rights to Benefits Affirmed: The Supreme Court decision reconfirms that victims injured before June 11, 2019, are entitled to all reasonable and necessary allowable expenses without restrictions.
2. Eradication of Uncertainty: Victims and families can now enjoy certainty regarding their care benefits, ending years of ambiguity and hope.
3. Restoration of Comprehensive Care: Victims who’ve had to compromise on care quality or were relocated can now reclaim comprehensive care and return home.
4. Boost for Michigan’s Home-Health Industry: The judgment is poised to positively impact Michigan’s home-health sector, revitalizing businesses and ensuring victims receive adequate care.

Reach Out for Expert Guidance

If you or a loved one suffered an injury before June 11, 2019, and have inquiries regarding insurance coverage and this recent decision, please get in touch with us. We’re here to provide insights free of charge.

Work with experienced personal injury attorneys at The Law Offices of Henry M. Hanflik. Our expertise in navigating intricate lawsuit intricacies ensures you maximize potential compensation. For a no-obligation consultation, get in touch today.