REP. TISDEL INTRODUCES BIPARTISAN AUTO INSURANCE REFORMS TO CREATE CLEAR, CONSISTENT CARE STANDARDS

The following information was released by the Michigan House of Representatives, the Republicans:

State Reps. Mark Tisdel (R-Rochester Hills) and Rep. Julie Rogers (D-Kalamazoo) today introduced bipartisan legislation 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.

Tisdel's 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 or around-the-clock supervision.

"Michigan families and care providers deserve a system that is easier to understand and navigate," Tisdel said. "Too often, disputes over billing and reimbursement create confusion, uncertainty and unnecessary legal battles. These reforms establish clearer standards, so everyone understands what types of care are covered and how reimbursement works."

Under the proposal, reimbursement rates would be tied to clearly defined levels of care for residential and community-based programs that provide specialized rehabilitation, supervision and medical support for injured patients.

Tisdel said the changes would create a more uniform system by establishing standardized reimbursement categories instead of relying on inconsistent pricing structures that vary widely between providers.

The legislation also eliminates the current practice of tying reimbursement rates to providers' 2019 charge masters, historical pricing lists that create unequal outcomes among providers depending on how they priced services years ago.

"This is about fairness and consistency," Tisdel said. "A provider that operated efficiently in 2019 while charging reasonable rates should not be locked into lower reimbursement rates because the law was changed to punish bad actors. Outdated pricing structures should not determine future payments. We need a system built around clear and consistent standards moving forward."

Tisdel said 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.

"These changes are designed to make the system more stable and predictable for the people who depend on it," Tisdel said. "Families caring for loved ones after catastrophic injuries need clarity and confidence that care will remain available without constant legal disputes over payment."

Tisdel emphasized that the legislation does not roll back major components of the 2019 no-fault reforms and is not expected to significantly increase costs for Michigan drivers.

"We can improve consistency and preserve access to care without increasing the cost to consumers," Tisdel said. "This proposal seeks to balance the needs of patients, families, providers and drivers through a clearer and more workable system."