Letter to the Oakland Press: AmeriCare President Greg Jamian discusses Auto-No Fault bill issues

September 27, 2011
Mr. Jerry Wolffe
The Oakland Press

Dear Jerry,

I read your article in the Oakland Press last week regarding the No Fault Tweak bill in Lansing. I am somewhat surprised that you did not offer any information on the down side of these bills (HB 4936 and Senate Bill 649).

As the president of the Michigan Spinal Cord Injury Association, I believe these bills would be devastating to Michigan’s injured insured’s. Additionally, we would be faced with a major setback as it relates to the development of new research and therapy centers that have produced countless breakthroughs in the treatment of muscular skeletal and neurological impairments due to injury and illness.

I just returned from Mackinaw Island to attend the GOP leadership Conference where my sole purpose for attending was to meet with our State legislators and discuss the perils of any proposed changes to Michigan’s existing laws. I was pleasantly shocked to receive support from many Representatives and Senators in my initiative to repeal these bills in committee.

The two bills could still come up early fall in committee and then fast tracked for a vote later this fall. As is evident from the foregoing, SB 649 and HB 4936 are a clear confirmation that the Michigan auto insurance industry desires to effectively repeal Michigan’s model no–fault insurance system and shift their commercial healthcare cost to government run Medicaid and Medicare. If these bills are enacted, the cost shift and uncompensated care consequences would be dire for the State’s Medicaid budget fueling more structural deficits going forward. Additionally, under any proposed change, thousand’s of critically injured patients would be displaced and forced to State funded welfare. In an important new study analyzing the impact of proposed changes to the state’s current No-Fault laws authored by Anderson Economic Group, AEG states, 5,000 jobs will be eliminated and $809 Million of care will shift from commercial insurance companies to state run Medicaid, individuals and charities!

Most economist agree that the following, are just some of the negative implications and or consequences of enacting any proposed legislation that is intended to be a classic cost shift from private sector to public sector coffers:

Increased Budget Deficits – due to cost shift to the State of Michigan’s budget and Medicaid

Increased taxes – resulting from a massive cost shift from no-fault insurance to Medicaid and Medicare;

Increased health insurance costs – resulting from massive cost shifts from no-fault insurance to health insurance coverage’s.

Increased insurance premiums – resulting from the need to purchase higher liability insurance to protect consumers from increased exposure to liability for a victim’s unfunded medical expenses.

Increased litigation – resulting from victims suing at-fault drivers for unfunded medical care thus tying up the courts and requiring more Judges

A loss of jobs and elimination of small business – resulting from diminished reimbursement to medical providers who treat severely injured accident victims.

Limited coverage for senior citizens and disabled people who do not drive – resulting from statutorily mandated minimum coverage’s for non-motorists who have no household auto insurance coverage.

Jerry, I would like to schedule a call to your office and ask that you may consider some of the additional facts I have included above. Since we are dealing with a republican majority up in Lansing, I have tried to limit my points to primarily the fiscal impact that such new legislation would have on the State and it’s residents. This is not to say however, that I am avoiding the human factor which would be negatively impacted.

Yours truly,

Gregory Jamian
President, CEO
AmeriCare Medical, Inc.

P. 248 280 2020
F. 248 288 2270
E. gjamian@americaremedical.com