Michigan Auto Insurance Reform 2021
Most of the Michigan no-fault auto insurance reform law took effect on July 2, 2020. The next phase will take effect on July 1, 2021.
What is changing?
Medical fee schedule—On July 1, 2021, Michigan will institute a new medical fee schedule to cap how much insurance carriers are required to pay for medical services and treatments. Doctors, hospitals, clinics, medical providers and other persons who treat and care for car accident victims will have to conform their charges for services to a new Medicare-based fee schedule.
Attendant Care—Auto insurance companies will not be obligated to pay for more than 56 hours per week for in-home, family-provided attendant care provided after July 1, 2021. This limitation in the No-Fault law does not apply to attendant care provided by a nurse from a commercial agency or in a residential facility.
Michigan Catastrophic Claims Association—The Michigan Catastrophic Claims Association (MCCA) will continue to pay for the medical costs of catastrophically injured car accident victims who are claiming medical benefits through a No-Fault auto insurance policy. The $100 annual fee per vehicle will be reduced to $86 per vehicle at the renewal after July 1,2021.
No Prior Auto Insurance –The amnesty period in which applicants cannot be surcharged for having no prior auto insurance ends January 1, 2021.
Is there anything you have to do for the new changes to the law?
There’s nothing you need to do with these changes.
What auto reform changes occurred on July 2, 2020?
To learn more about auto reform changes that took place last year, visit our blog article on Navigating the Changes of Auto Reform