Our office has been asked frequently by clients about how the new car insurance law will impact accident victims who require attendant care benefits. Under the new law, there is a new 56 hour per week limitation which applies to in-home family provided attendant care services after July 1, 2021.
The new law has two provisions which may affect family provided attendant care:
1. There is a 56 hour a week cap on home family provided attendant care.
The limitation applies only to care for an injured person if the care is provided in the home setting and by a family member living in the same household or if the care provider is a friend/acquaintance who knew the victim at the time of the accident. Despite this limitation, insurance companies have shown a willingness to sign contracts and pay for family members to continue providing the attendant care on a 24-hour basis because it is economically cheaper than hiring a commercial company to provide the care. The amended statute states that, “an insurer may contract to pay for benefits for attendant care for more than the hourly limitation.” Our office has been able to negotiate these contracts with insurance companies and protect the injured person’s right to ongoing attendant care benefits.
2. The new law provides a 55% fee schedule for services not compensable under the Medicare fee schedule.
This would apply to in home attendant care provided by families or commercial providers. If the reimbursement rate is capped at 55%, most medical providers will not be able to provide adequate services at the reduced rate. There is no provision within the new law which states that this limitation applies to a newly formed medical provider business who was not in existence at the time the new law was passed. This may be a viable option for some medical providers. There currently are legislative proposals to address the unfairness of the new law. It is likely that any amendments will not be enacted until immediately before the upcoming July, 2021 imposition of fee schedules. Hopefully, our Legislature will fix this reduction in benefits which is likely unconstitutional given its retroactive application to existing claimants.
OTHER ANSWERS TO MOST FREQUENTLY ASKED QUESTIONS
- Insurance companies are still required to offer unlimited medical coverage.
- The new higher bodily injury limits become effective for policies issued or renewed after July 1, 2020.
- A passenger (non-vehicle owner or insured) is covered under an auto policy with PIP benefits they have purchased separately. A passenger who has opted out of PIP is not eligible for PIP benefits. A passenger who has not opted out of PIP coverage and does not have their own coverage is subject to PIP choice rules.
- PIP medical limits do not apply wage loss or replacement service benefits.
- Consumers may not use VA coverage as qualified health coverage to opt out of PIP medical coverage.
- Mini-tort damages are increased to $3,000.00 for any accident occurring after July 1, 2020.
Under the new law, a motorcyclist involved in an accident with a motor vehicle would continue to seek PIP benefits from the insurer of the involved motor vehicle but is subject to any PIP choice limits of the policy. If no PIP coverage is available, a motorcyclist is eligible for up to $250,000.00 in PIP benefits from the Assigned Claims Plan.
If you have questions regarding the new Michigan Auto Insurance Law or need advice with your personal injury claim, Logeman, Iafrate & Logeman can help. Our Personal Injury Attorneys in Ann Arbor have been helping seriously injured accident victims throughout Michigan recover the compensation they need and deserve for over 45 years. Contact us at 866-992-0200 toll free, for a Free Consultation.