DETROIT (AP) — Michigan residents who were catastrophically injured in car wrecks before the summer of 2019 can't have insurance benefits reduced while they continue to get long-term care, the state Supreme Court said Monday in a decision that provides critical relief for thousands of people.
For decades, crash survivors were entitled to lifetime payment for “all reasonable charges” related to care and rehabilitation. But a new state law set a fee schedule and a cap on reimbursements. Suddenly, 18,000 people already receiving benefits were forced to scramble as some health providers dropped out.
But in a 5-2 opinion, the Supreme Court said a “vested contractual right” to ongoing benefits “cannot be stripped away or diminished,” especially when lawmakers failed to declare an intent to do so when they changed the law.
The decision was written by Justice Elizabeth Welch, a Democrat, and joined by other Democratic justices and Chief Justice Elizabeth Clement, a Republican.
In an effort to lower Michigan’s insurance rates, which were among the highest in the U.S., the Republican-controlled Legislature and Democratic Gov. Gretchen Whitmer agreed to sweeping changes in 2019. Drivers can save money by choosing certain injury-coverage options.
The catastrophically injured include hockey star Vladimir Konstantinov, a former member of the Detroit Red Wings, who requires 24/7 care. He suffered severe brain damage in 1997 when a drunken limousine driver crashed the car he was traveling in, following the team's championship.
Another person who has frequently talked publicly about the law's drastic impact on his long-term care died Monday, according to CPAN, a coalition of medical organizations and consumer groups speaking for accident victims.
Brian Woodward suffered devastating spinal injuries in a 1980s crash but was able to get in-home care and even hold a job. When the law changed, and care rates were reduced, he said he lost caregivers and was shuttled from facility to facility.
“It resulted in the spiritual, emotional and physical decline of many people, including Brian,” said Tim Hoste, president of CPAN. “If you don't have appropriate care, your condition will decline rapidly. That's what happened.”
An industry trade group, the Insurance Alliance of Michigan, said the Supreme Court decision will open the door to overcharging for medical care. The lower reimbursement schedule, however, remains intact for injuries since the law was overhauled.
In a dissent, Justice David Viviano said the Supreme Court majority crafted an opinion based on “vague and disputed concepts” to provide cover for those who simply believe it would be unfair to reduce future benefits for the long-term injured.
“As a result, the efforts of the Legislature and the governor to reduce costs and make insurance more affordable for all the residents of our state will not come to fruition for many decades,” said Viviano, who was joined by fellow Republican Justice Brian Zahra.
“If courts cannot be trusted to faithfully interpret and apply the laws, especially those involving such significant and contested topics, then the democratic process is in peril,” Viviano said.
Michigan Supreme Court by WXYZ-TV Detroit on Scribd
