BRIGHTON, Mich.—(May 18, 2020)—When Michigan’s new auto insurance law goes into effect on July 1, consumers will have the option to purchase auto insurance that does not fully cover medical expenses in the event of a catastrophic injury. The Michigan Brain Injury Provider Council (MBIPC) urges all consumers in the state to choose the lifetime coverage option for medical expenses they had under the state’s previous no-fault auto insurance laws.
To illustrate the high stakes of that decision, MBIPC is sharing the stories of two accident victims whose fates show the enormous disparity in care for those who have lifetime coverage for medical expenses and those who don’t.
“When it comes to traumatic brain injuries and spinal cord injuries, the right treatment at the right time can flip the script on a victim’s entire future. I’ve seen traumatic brain injury victims go from being non-responsive in a hospital bed, unable to eat, walk and talk then progress to be able to return to work — the therapies are that powerful,” said Margaret Browning, who is a longtime advocate for brain injury victims through her work as a legal guardian and an attorney.
“I serve as the guardian for two women with similar injuries but vastly different post-accident care. It’s like day and night,” Browning said. “One had lifetime auto insurance benefits at the time of her accident. The other did not. One receives outstanding therapies on a daily basis. The other only gets the most basic care. Once Michigan’s new auto insurance law takes effect on July 1, 2020, Michiganders will be masters of their own fate when it comes to the level of treatment they will receive in the event of the unthinkable. I hope all Michigan residents choose the highest level of protection for themselves and their families.
Patricia Ward of Swartz Creek was severely injured in a car accident in October 2016 and is unable to speak, eat any food by mouth, or walk. She is totally dependent on others for all her needs. Patricia is 23 years old and lives in a 12-person residential rehabilitation house for individuals with traumatic brain and spinal cord injuries. In addition to her basic care, Patricia receives regular physical therapy, speech therapy and occupational therapy from experts in the field of traumatic brain injury. Her treatment is paid for by no-fault lifetime coverage.
Cristina McVeigh of Alma was critically injured in a motorcycle accident in September 2017. She too suffered a severe traumatic brain injury – unable to speak, swallow solid food or walk, completely dependent on others for all her needs. Unfortunately, her auto insurance policy lapsed just days before the accident. Because she did not have no-fault coverage at the time of her accident, her care has been provided through Medicaid, which is a state funded program for individuals with limited assets. Although Cristina is only 32, she now lives in a nursing home, where she receives care from caregivers who are not trained in traumatic brain injury rehabilitation. Most of her days are spent in bed watching television.
“Michigan used to be a state where victims had a right to recover from their injuries. As a professional guardian, I help clients get the resources they need to get better,” said Browning, who is also a member of the MBIPC Board of Directors. “For Medicaid clients like Cristina, I have to fight to ensure appropriate therapies are provided. The fact is, Medicaid resources are very limited. It terrifies me to think we will see more and more stories like Cristina’s, if Michigan drivers choose anything other than lifetime coverage.”
Due to the comprehensive lifetime coverage provided by the no-fault act, Michigan has some of the best treatment centers for traumatic brain injury in the nation. However, as explained by Tammy Hannah, CEO and President of Origami Rehabilitation, “In Michigan, access to post-acute residential TBI rehabilitation through Medicaid is significantly limited. Unfortunately, commercial health insurance does not pay for such treatment either.”
Cristina’s mother, Lori Ferrier, says she can tell her daughter is desperate to communicate with her — but she is not receiving the therapy to make that happen. “I pray every day we had the resources to help my daughter speak,” Ferrier said. “I know Cristina’s nursing home caregivers do the best they can, but they are not experts in treating traumatic brain injuries. And they have many other residents to care for. My daughter is in a situation that more and more Michigan residents will face if they don’t choose lifetime coverage.”
The lifetime cost of treatment for an individual with a severe brain injury is usually in the millions. Yet Michigan’s new auto insurance law gives drivers six options for PIP coverage:
Unlimited lifetime coverage
Up to $500,000 in coverage
Up to $250,000 in coverage
Up to $250,000 in coverage with PIP medical exclusion(s): Exclusion is available for a named insured with non-Medicare health coverage that covers auto accident injuries and/or for household members if they have health insurance that will cover auto accident injuries.
Up to $50,000 in coverage: Available if the named insured is enrolled in Medicaid and their household members have another auto insurance policy or health insurance that will cover auto accident injuries.
PIP medical opt-out: Available if the named insured has Medicare (Parts A and B). Any of their household members must have another auto insurance policy or health insurance that will cover auto accident injuries.
“For someone who has never had a family member injured in a catastrophic accident, $250,000 of PIP coverage can sound like a lot,” said Tim Hoste, president of MBIPC. “The unfortunate truth? Those dollars can easily be used up before the victim even leaves the hospital. Many of these victims will experience personal financial ruin, be forced onto Medicaid, and be unable to access the critically necessary products and services that individuals with traumatic brain injuries and spinal cord injuries require for their care, recovery, and rehabilitation.”
Consumers should also consider additional measures to protect their financial health under Michigan’s new law. “Medical bills are the #1 reason for individual bankruptcy filing,” said Maureen Kinsella, an attorney who has represented hundreds of families after catastrophic accidents and an MBIPC Board Member. “You can protect your financial health now by choosing lifetime coverage for medical expenses. The small price you will pay for choosing lifetime coverage will ensure you receive the needed lifetime care after brain or spinal cord injury, AND it will help protect you from financial devastation due to medical bills.”
