LANSING, Mich., Aug. 25, 2022 — The Michigan Court of Appeals ruled today that the changes made to no-fault auto insurance, which took effect in July 2021, should not apply retroactively to people who purchased policies and were injured prior to the changes taking effect. 

“I am thrilled that the Michigan Court of Appeals ruled that Michigan’s no-fault auto insurance reform laws do not apply to those catastrophically injured in a crash prior to the changes made in 2019,” said state Rep. Julie M. Rogers (D-Kalamazoo). “While many other legislators and I have been shouting this from the rooftops from day one, it is absolutely cruel that the insurance companies were allowed to make up their own rules this entire time. People have been suffering — some have even died. This ruling is lifesaving and is long overdue. I stand ready and willing to continue working on reforms that will ensure accountability and transparency for insurance companies.” 

As a practicing physical therapist who works with those who have been catastrophically injured, Rogers recognized the glaring issues that the new fee schedule would cause for people across the state. She introduced House Bill 5125 in June 2021 to delay the start of the updated fee schedule and 56-hour per week cap on family and friend-provided home-based attendant care, but Republican leadership did not allow the bill to be brought up for a vote. 

Changes to Michigan’s no-fault insurance system enacted in 2019 resulted in enormous cuts to medical care for accident victims. The new fee schedule that went into effect in 2021 only reimburses rehabilitation providers at 55 percent of what they were charging in January 2019. Since those changes have gone into effect, more than 1,500 people have lost medical coverage necessary for their quality of life, and more than 3,000 have lost jobs at rehab facilities and other medical providers.