Home health care agencies take loss after no-fault insurance changes

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LANSING, Mich. (WLNS) — The recent no-fault changes cut funding for home health care agencies that serve victims of car crashes.

The owner of Bright Star Care of East Lansing tells me the changes will cut 45% reimbursement from agencies. He’s lost more than 10 employees because of this huge loss. He says his company may not be able to take auto accident cases if something doesn’t change.

Michigan’s recent no-fault insurance c”We can’t sustain this much longer with our current auto clients to take a loss,” said Chris Miller, owner of Bright Star Care of East Lansing.

The process of getting reimburses for their auto accident cases has changed drastically.
“Starting July 2nd, everything has been denied and they say we have to resubmit using Medicare coding and Medicare billing processes which we’ve never had to do,” said Miller.


He says the agency is paying nurses the same rate despite the cuts but he can’t do it much longer.


“They wanted something more concrete to count on and with the inability to promise them the auto cases a lot of them quit,” said Miller.

Leaving several families of their clients having to step in.
“The families are struggling, they’re burnt out they’re tired,” he said.

The state is providing agencies across Michigan a total of $25 million to reimburse them the difference until they find a solution, but Miller says it’s an even longer process because of insurance billing issues.


“At that point now you’re looking at 90 days before we can even attempt to apply for part of this $25 million dollar fund,” he said.

He says his concern is for those at most risk, victims who won’t be able to receive help if things don’t change.
“Let’s correct this, and let’s make this equal across the board, and let’s do it for the accident victims they didn’t ask to be in this position that they’re in now,” said Miller.

State senator Mike Shirkey told 6 news lawmakers want to see the numbers before they do anything. For now home health care programs can apply for the $25 million, but it’s not clear however when the money will be distributed.

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