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Lawmakers push for auto insurance law reform

Many caregivers and lawmakers say those involved in accidents could lose critical care needed for rehabilitation under the new law.

LANSING, Mich. — Democratic lawmakers held a conference Wednesday morning to discuss the auto insurance law that will go into effect in Michigan on July 1.

The law allows drivers to lower their premiums by reducing the amount they'd be reimbursed for medical care, if injured in an accident. However, many caregivers and lawmakers say those involved in accidents could lose critical care needed for rehabilitation.

Lawmakers urged the State House and Senate to take up bills that they say would fix the fee structure in the law.

“These rehabilitation centers, most of which are local small businesses, will not survive a pay cut,” said Rep. Julie Rogers. “Some are already reporting that they plan to lay off their staff and close their doors on June 30, giving pink slips to front line care providers and throwing the vulnerable, gravely injured accident victims they care for into complete disarray.”

Lawmakers say the proposed change is similar to other parts of the auto reform bill that set one rate for care that already had separate billing codes in the system, which would hurt those smaller businesses providing the same care.

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