Michigan bill would halt fee schedules when benefits are overdue

Insurers who are late paying benefits under no-fault insurance, such as workers compensation, would lose the protection of medical fee schedules in covering claims under a bill set to be introduced in the Michigan House of Representatives on Tuesday.

H.B. 4493 amends state law on fee schedules, and that charges by medical providers providing care under insurance “must not exceed the amount the person customarily charges for like treatment or training in cases that do not involve insurance.” The law goes on to provide guidance on fee schedules based on rates set by Medicare.

New language outlined in the bill states fee schedules would “apply only if payment of the benefits is not overdue” and that the payment rate “is not admissible in an action against an insurer for overdue benefits.”




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