Michigan No-Fault Reform Update

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As an update on the changes promised by both political parties in Michigan, this morning the Michigan Senate passed Senate Bill 1, which would significantly alter the Michigan No-Fault Act.  A comprehensive review of the bill is being performed by Segal McCambridge attorneys and we will have updates throughout the coming weeks as it pertains to common problems that are encountered by insurers. 

As an overview, the proposed legislation does impact the following areas:

  1. PIP goes from mandatory, to optional, including the right to seek unlimited medical, reduced medical up to $250,000 or no medical;
  2. Medical expenses paid under PIP are tied to the Worker’s Compensation rate schedule;
  3. Out of state insurers are no longer required to provide PIP benefits under any circumstances if they do not write within the state;
  4. Solicitation by Plaintiffs’ attorneys is now a defense to a claim;
  5. Bills submitted more than 90 days after the date of service will no longer be reimbursable;
  6. Economic expenses, including medical expenses, are recoverable in a third party suit if the Plaintiff has a reduced amount or no PIP coverage;
  7. The MCCA will no longer take new claimants 6 months after the passage and signing of the bill.

Further, as of this writing, the bill itself does not contain a pay-it-forward costs savings that would require insurers to reduce premiums.

Note, there are other changes included in the proposed legislation.  If you have any questions regarding same, please do not hesitate to contact us.

Please click here to see Senate Bill 1.

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