The no-fault auto insurance law in the state of Michigan entitles the person with catastrophic injury to claim lifelong benefits for medical expenses and rehabilitation costs. However, with the increasing cost of availing medical facilities it will be very tough for many residents of the state to be able to avail this policy.
Over the last ten years, the cost of availing medical facilities has upped the average of the PIP claims by at least 166%. The cost that stood at $13,617 in the year 2000 has now risen to $36,245 in the year 2010. Through these years, the Catastrophic Claims Association in Michigan reimbursed claims totaling over $500,000 on behalf of the insurance companies in the state. This assessment increased from $5.60 to $145 which is a rise of over 25 times.
Availing the no fault car insurance policy ensures that the injured person can still avail medical respite despite the lower funding offered by programs such as Medicaid that are run by the government. Policy holders will have to shell out more money to avail medical treatment if the insurance providers subsidize.
In the state of Michigan, the cost of availing medical treatment is dependent on who is paying for it. The cost of the treatment is different if the person is paying from their pocket as compared to when it is being paid by the auto insurance providers or by workers or health compensation insurance. Consider this example. The cost of getting a CT scan done for the neck region is a little over $260 if MediCare is reimbursing the cost. If it is the workers compensation insurance, the cost goes up to a little over $415 and the cost of $1,820 if your auto insurance company pays for this procedure.
Thanks to the ever increasing medical costs, over 20 percent of the drivers in the country are using the cars without carrying a valid auto insurance coverage. This substantiates the fact that there is something wrong with the current system that needs to be rectified. To ensure that the no-fault law in Michigan stays in place for a longer span of time without burning a hole in the customer’s pocket the insurance industry needs to implement a fee schedule for the medical costs that also offers customers varied coverage options. The current changes being put forward stipulate that the customers should be able to choose a PIP coverage where the cost of medical options could range from $50,000 to $500,000.
