McCall Hamilton Advocacy and Public Affairs

Updates About Auto No-Fault

Court Rules No-Fault Changes Not Retroactive

Update: Aug 22-Sep 2, 2022

The approximately 17,000 who saw their catastrophic care coverage severely limited following the enactment of the 2019 auto no-fault law had a major win on August 25 when the Court of Appeals ruled that the retroactive application of the reform violated the Contracts Clause in the Michigan Constitution.

In the opinion for Andary v. USAA Casualty Insurance Company, issued by Judges Douglas Shapiro and Sima Patel, the judges found that the Legislature failed to clearly specify that the law was to apply retroactively. Those who were injured prior to the new law, under their previous insurance contracts, were guaranteed medical expense care and reimbursement at levels set in those contracts.

Changes in the auto no-fault law, which went into effect in July of 2021, limited reimbursement for family-provided attendant care to 56 hours a week. It also capped a health care provider’s reimbursement for services not covered by Medicare by 45 percent of the fees set in January 2019.

*Andary v. USAA Casualty Insurance Company *was remanded to the Ingham Circuit Court where prospective coverage could be considered. An attorney for the insurance company has said they plan to appeal to the Michigan Supreme Court.