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Politics & Government

Doctors worry trauma centers could face serious cuts under no-fault overhaul

wrecked car
Robbie Howell
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Flickr - http://j.mp/1SPGCl0
If you're hurt in an auto accident, the personal injury protection part of Michigan's mandatory no-fault insurance will pay all of your medical costs. It's lifetime, unlimited coverage.

Michigan's hospitals say they could be forced to make major cuts to their trauma centers if bills to overhaul the state's no-fault auto insurance law go through.

All Michigan drivers are required to buy no-fault auto insurance. A portion of premiums goes into a fund for unlimited medical care for catastrophic crash victims.

Some lawmakers want to cap how much doctors are allowed to bill auto insurers.

Doctor Randy Janczyk runs the trauma center at Beaumont Hospital. He says centers like his would have to make serious cuts that would “deplete the overall quality of care throughout the state for all of us.”

"When our pager goes off, there are at least 70 people at this campus alone who are notified that their services may be required,” says Janczyk. “And it takes money."

The Michigan Health and Hospital Association estimates health systems around the state could lose $1 billion a year. 

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