On April 23^rd a new bill (HB 4612) was introduced by the Michigan House of Representatives. This bill could be disastrous for motorcyclists and our passengers. It would cap medical and other no-fault benefits, making it difficult or impossible for some accident victims to afford their medical costs.  All vehicle accident victims would be hurt by the significant benefit reductions proposed in this legislation, but motorcyclist would be disproportionately worse off... significantly shafted!

 

Our current no-fault system requires auto insurance companies to pay “all reasonable charges incurred for the reasonable and necessary products, services and accommodations for the injured person’s care, recovery and rehabilitation.” Stated more simply, insurers must pay all medical bills related to your medical treatment and care for life, as well as pay for wage loss, household chores, and medical mileage.

 

Under this proposal, drivers of cars (‘motor vehicles’ not motorcycles) would have coverage of their medical bills capped at $1 million. There are many other limitations pertaining to the products, services and accommodations covered in the current system.

 

Motorcyclists would be subject to even further caps and cutbacks. Bikers would only be entitled to $250,000 of total Personal Injury Protection (PIP) coverage, including wage loss and replacement services, regardless of how or why the crash occurred. See section 3107 (3)(C) of the proposed bill. 

 

Consider this example: Under the proposed changes, if a motorcyclist with a good job is permanently disabled after an accident, and qualifies for the maximum wage replacement and household chores reimbursement, he would only have $78,400 left to pay medical bills. More realistically, the medical bills incurred close to the date of the incident would eat up the full $250,000 of coverage, leaving little to nothing for wage loss or household chore reimbursement. More likely, the motorcyclist would be left with additional medical costs. A car driver in the same situation would start out with four times more coverage. The current law has the same limitations on how long an accident victim is paid wage loss and replacement services, but provides unlimited coverage for medical costs for life.

 

This proposal slashes medical benefits

 

The new bill proposes to eliminate life-long coverage, limiting Personal Injury Protection (PIP) coverage to $1 million for drivers of ‘motor vehicles’, and only $250,000 for motorcyclists. Attendant care would be significantly limited: If the attendant care was provided by family or household members in-home, coverage would be limited to 56 hours per week. If in-home care is provided by a nursing service, it would be limited to 16 hours per day, regardless of whether or not round-the-clock coverage is required. For the first time ever, the bill would require a $200 per month co-pay at the expense of the patient if attendant care is needed on a full-time basis, effective 30 days after attendant care is initiated.

 

This bill eliminates the victim's right to a jury trial

 

The right to a jury trial would be taken away by this new bill. According to the proposed bill; ”Whether a charge is reasonable or whether a product, service, or accommodation is medically appropriate and medically necessary is a question of law to be decided by the court,” not a jury.

 

The proposal will not lower premiums

 

While promises of lower premiums have been made, they can't be fulfilled. The bill does require the reduction of rates by $150; however, insurers can increase the rates one year later without limitation. The cuts to coverage will force drivers to obtain additional PIP coverage from other sources, so any cost reductions they might have seen from insurance rates will be offset by the new cost for PIP coverage.

 

The bill will retroactively cut coverage to current benefit recipients.

Virtually all of the reductions in benefits and charges will be retroactive. The bill states “payments to providers for… products, services and accommodations are subject to the limits in this section…”  A motorcyclist who was previously in an accident and whose doctor's appointments, therapy, and other medical costs are currently being covered could be immediately and totally cut off.

 

Make your voice heard

 

The cutbacks and changes proposed in this bill will be terrible for all Michigan drivers, and it could catastrophically impact many motorcyclists and their families. If you are unhappy with the proposed law, contact your legislator to let them know. Visit this website to send them an email today:

 http://capwiz.com/miafj/issues/alert/?alertid=62620191&PROCESS=Take+Action

Please note: this article was written while the Bill was pending in the House Insurance Committee.  By the time this is published, typically changes will have been made to the Bill.  For the current version of the Bill go to: www.legislature.mi.gov

 

* Wage loss up to about the $100 per month for up to three years; up to $20 per day for household chores for up to three years; mileage to and from the doctor; and attendant care.