Medical Payment Caps in Michigan No-Fault Insurance Policies
Posted by
Larry BuckfireJuly 19, 2007 6:22 PMMichigan car insurance companies are trying to pull a fast one on consumers by proposing that consumers can save money on their Michigan No-Fault Insurance premiums by choosing to limit their medical payment benefits. Under the current Michigan No-Fault law, persons injured in motor vehicle accidents can receive unlimited medical benefits for their lifetime. In serious and catastrophic injury cases, these payments can run into the millions of dollars.
When the No-Fault laws were enacted in Michigan, consumers gave up many of their rights to sue negligent drivers for money damages in exchange for the unlimited medical care. In fact, if a person with Michigan auto insurance would review their policy, they would see that a very small percentage (probably less than 15%) of the premium is for the medical payment coverage. Therefore, a person who limits their coverage to save a few bucks might only save $50.00 per year but is giving up unlimited medical coverage benefits. If the injured person has no other insurance coverage, he or she will not be able to get the necessary medical treatment.
Additionally, a catastrophically injured car accident victim would still receive treatment and the bills would go unpaid. A hospital cannot simply discharge a patient because the insurance money has run out. This would result in health care facilitiies taking a big financial hit and ultimately the taxpayers because government funds would be used to care for the injured patient.
All in all, this proposal is simply a bad idea favored by insurers to increase profits. The consumer would benefit virtually nothing from this amendment and the insurance companies would ultimately raise their premiums anyways. Insurance company profits for auto insurance in Michigan are at record highs and this would only increase their profits. Hopefully, politicians and consumers will read between the lines and make this proposal go away.