GRAND RAPIDS, Mich — For many, getting a $400 check in the mail is an exciting thing. For accident survivors struggling with less care since no-fault law reform, it's "quite a blow."
The checks will be mailed out soon. The $400 refunds per vehicle are from a $3 billion surplus in funds from the Michigan Catastrophic Claims Association (MCCA) fund. That fund is used to ensure continued care for catastrophic accident survivors. The surplus is an effect of the no-fault auto insurance reform.
"As of July 2, there was no money going out from the auto insurance company to my home health agency that covers caregivers, nursing visits, therapy, supplies, medication, transportation," said Melissa Springsteen, an accident survivor. "All of it was interrupted."
Springsteen was in an auto accident at 15 years old that left her paralyzed. She requires 24/7 home care giving. Until 2021, all of her medical costs were covered under no-fault. She has been able to live a full life with the help of caregivers. That was until the change took place.
"It was like being slammed into by the semi again," said Springsteen. "The life that I have adjusted to and learned how to live is now in jeopardy."
She has lost one caregiver, and is at risk for losing another one.
Opponents to the no-fault reform law say there were unintended consequences that strips care for past and future accident survivors. The problem lies in a fee schedule for some services, like rehab, and a cap on the number of hours a week for home care.
Supporters of the reform say it will save Michigan drivers money.
Meanwhile, State Representative Julie Rogers (D-Kalamazoo) was "disappointed" when she heard the governor announce the $400 refund checks. Rogers has introduced and supported many bills to help fix the no-fault auto insurance reform. All sit on the house and senate floors. She called it, "unacceptable."
"We absolutely need committee hearings," said Rogers. "We need to debate like we do on all bills here, all sides. Make a decision and give it an up or down vote."
She said the MCCA fund is not very transparent, and it's difficult to tell how much money is actually in the fund.
"I really would like to see a conversation about making our current accident survivors whole, and making sure that they get the care they need," said Rogers. "If there is additional savings, you know, certainly offering rebates and relief to people is important too, especially considering that the insurance companies made record profits in 2021."
The MCCA is still maintaining approximately $2 billion in surplus funds to ensure continuity of care for catastrophic accident survivors.
Rogers said the Brain Injury Association of Michigan is creating a fund where people can donate their $400 refunds to care for accident survivors.
The accident survivor advocacy group "We Can't Wait" has also set up a GoFundMe page for people to donate their refunds if they wish. Peggy Campbell, the founder of We Can't Wait, said the fund would be for continuing to educate the public and legislatures about what has happened for accident survivors.
"It was very disheartening when the governor announced that, 'Oh, no-fault reform is working, the survivors are being taken care of,'" said Campbell.
Campbell said 96 care providers have either closed or no longer accept no-fault patients across the state as a reflection of the reform.
"There's this group of 17,000 people who have been catastrophically injured," said Campbell. "6,500 require 24/7 care. But all these people require some kind of care that's been cut."
Meanwhile, Springsteen plans to be at the state capitol every Tuesday, advocating for a change in the reform.
"The no-fault pot has been there for decades," said Springsteen. "Money has been paid in for decades. That money is intended for people that were injured through auto accidents that have catastrophic lifetime injuries. That's what the money was intended for. And it's not right that the Michigan legislature took that from us. And here we are now suffering."
RELATED VIDEO: $400 refund checks will be issued per car to Michigan drivers with auto insurance
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