Rep. Rogers Introduces Bipartisan Auto Insurance Reforms to Create Clear, Consistent Care Standards

LANSING, May 14, 2026 – State Reps. Julie Rogers (D-Kalamazoo) and Mark Tisdel (R-Rochester Hills) introduced bipartisan legislation (HB 5980 and 5981) aimed at simplifying Michigan’s no-fault auto insurance system by creating clearer standards for long-term injury care, reducing costly legal disputes and making reimbursement rules more predictable for families, care providers and insurers.

The legislation would establish more clearly defined payment standards for providers caring for people seriously injured in automobile accidents, particularly patients requiring long-term rehabilitation, residential treatment, in-home care or around-the-clock supervision.

“As a practicing physical therapist, I have worked with patients whose lives changed in an instant because of a crash,” Rep. Rogers said. “This legislation is about making sure patients and families can access the lifesaving care they need for the longer term as they navigate complex medical conditions.”

Under the proposal, reimbursement rates would be tied to clearly defined levels of care for community-based residential programs that provide specialized rehabilitation, supervision and medical support for injured patients. The goal is to create a more uniform system by establishing standardized reimbursement categories instead of relying on inconsistent pricing structures that vary widely between providers and resolving the unreasonable reimbursement cap (nearly 50% of their 2019 charges) that these companies are operating under.

The reforms are intended to reduce litigation between providers and insurers by creating more predictable reimbursement rules and clearer definitions for levels of care. The proposal maintains existing Medicare-based reimbursement limitations while adding additional guidance for accreditation standards involving long-term care providers, including residential facilities and in-home health care services.

The legislation does not impact the broader framework of Michigan’s 2019 no-fault reforms. Instead, it would create a more consistent and uniform reimbursement system by establishing standardized payment categories rather than relying on pricing structures that vary widely among providers. The legislation also eliminates the current practice of tying reimbursement rates to providers’ 2019 charge masters, historical pricing lists that can produce unequal outcomes based on how providers set their rates years ago.

“For people recovering from catastrophic injuries, access to consistent, medically necessary care is not optional; it is what helps them regain function, preserve dignity and maintain quality of life,” Rep. Rogers said. “It’s about providing more stability and fairness with reimbursements for caregivers.”

House Bills 5980 and 5981 were referred to the House Insurance Committee where they await consideration.

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