Auto No-fault Benefits from Michigan Assigned Claims Plan Not Capped Until July 2020
Posted on September 27, 2019
On Sept. 24, the Michigan Department of Insurance and Financial Services (DIFS) issued an order protecting auto no-fault benefits for auto accident survivors who need benefits from the Michigan Assigned Claims Plan (MACP). Pursuant to DIFS Order 19-049-M, benefits from the Michigan Assigned Claims Plan may not be capped at $250,000 before July 2, 2020. Some of the provisions of Public Acts (PAs) 21 and 22, which reformed Michigan’s auto no-fault insurance program, took effect June 11, while others will take effect in July 2020 and July 2021.
Some accident survivors may have made claims to the MACP between June 11 and Sept. 24 and been informed that their benefit was limited to $250,000. Based on the DIFS order, that limit cannot be enforced, and those claims are entitled to the full auto no-fault benefit available. The full auto no-fault benefit covers “allowable expenses consisting of reasonable charges incurred for reasonably necessary products, services and accommodations for an injured person's care, recovery, or rehabilitation.” This means there is no monetary limit on the benefit, only a limit of what is reasonably necessary.
The MHA will pursue further legal analysis of this order and share it with members as soon as possible. For more information about the DIFS order and the MACP, contact Laura Appel at the MHA.
Posted in: Issues in Healthcare