While some immediately sang the praises of the proposed auto insurance reform plan approved by the Michigan State Senate on Tuesday, the state’s Governor says she’ll veto it, and people who respond to crash scenes are calling it a wreck in its own right and say it puts their business in jeopardy.
Literally just hours after the vote in the Michigan Senate calling for a considerable overhaul of the system, Gov. Gretchen Whitmer said she would veto the bill if it comes to her desk. In a statement, the Governor says, “Today’s action by the Senate creates more problems than it solves. It preserves a corrupt system where insurance companies are allowed to unfairly discriminate in setting rates and the only cuts it guarantees are to drivers’ coverage.” She adds, “I am only interested in signing a reform bill that is reasonable, fair and protects consumers and this is not it. If this bill comes to my desk, I will veto it.”
Meanwhile, the Michigan Association of Ambulance Services Executive Director Angela Madden issued her own statement following the passage of Senate Bill 1 to reform Michigan’s auto no-fault system:
“Michigan’s EMS providers strongly oppose the Senate no-fault plan that would make it nearly impossible for our first responders to be adequately paid for their work. Under this bill, we estimate that payments to local ambulance agencies would be reduced by 40-50 percent. Our providers are required to service a patient regardless of their insurance coverage and ability to pay, but the proposed fee schedule would make it extremely detrimental for ambulance providers to cover their costs. Allowing the government to set rates far below the cost of treating and transporting a patient puts a tremendous financial burden on our providers. As passed by the Senate, these reductions in payments to ambulance services will require many agencies to go to their local governments for tax dollars to avoid making service cuts that jeopardize their ability to respond to medical emergencies.
We strongly oppose this bill and ask for ambulance providers to be exempt from fee schedules so that we can continue to provide the life-saving services Michiganders need.”
