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File #: 22-0789    Version: 1 Name: 5/5/22 Resolution in Support of Michigan House Bill 5931
Type: Resolution Status: Passed
File created: 5/5/2022 In control: City Council
On agenda: 5/5/2022 Final action: 5/5/2022
Enactment date: 5/5/2022 Enactment #: R-22-135
Title: Resolution in Support of Michigan House Bill 5931
Sponsors: Elizabeth Nelson, Travis Radina
Resolution in Support of Michigan House Bill 5931
Whereas, The Michigan No-Fault Auto Insurance Reform Act of 2019 enacted medical fee schedule changes effective July 1, 2021 that imposed severe restrictions on reimbursement rates for providers of crucial medical care for motor vehicle crash victims;

Whereas, Reimbursement for post-acute rehabilitation care, in-home health care,
transportation and other crucial services that do not have Medicare billing codes were capped at 55% of what providers were charging for those services on January 1, 2019;

Whereas, As a result, more than 18,000 Michigan residents with severe brain, spinal cord and other catastrophic injuries, including many thousands in Washtenaw County, have found it impossible to obtain all necessary care that they need for basic survival;

Whereas, Dozens of health care and rehabilitation providers have gone out of business, leaving thousands of skilled health care workers unemployed;

Whereas, In many cases, there has been nowhere else for desperate injured survivors to go but to hospitals, which are already severely strained attempting to cope with record numbers of COVID-19 patients;

Whereas, Protection for the catastrophically injured has been eroded further by the recent announcement that the Michigan Catastrophic Claims Association (MCCA), established by law to provide reimbursement to no-fault insurance companies for medical claims paid in excess of coverage, will be refunding $3 billion from current surpluses being held in the MCCA Trust Fund to policyholder;

Whereas, Despite assurances when the 2019 Act was passed that the law would be fixed later, if necessary, this has not happened; and

Whereas, Michigan House Bill 5931 has been introduced to fully repeal the 2019 Act in order to reinstate reimbursement for the continued post-acute care of auto crash survivors and eliminate other problematic aspects of the current insurance law;

RESOLVED, That the City of Ann Arbor str...

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