Error-free revision does not apply to survivors of previous crashes

A Michigan Court of Appeals panel ruled Thursday that new controls on medical expenses in the recent overhaul of Michigan’s auto insurance system are unconstitutional and do not apply retroactively to accident victims whose accidents occurred before the 2019 law amendment.

The 2-1 ruling, which lawyers say will appeal to the Michigan Supreme Court, is a victory for critics of the overhaul who argue that cost containment of unlimited, lifetime medical coverage for car accidents is too strict and some have forced patient rehabilitation centers to close and home health services to drop or threaten to drop patients.

The eventual outcome of the case could affect the size and frequency of any future refund checks issued to drivers statewide for surpluses in the Michigan Catastrophic Claims Association fund known as the MCCA. Drivers received $400 per vehicle refunds from auto insurers this spring due to an MCCA surplus generated largely by the new cost containment.

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