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Medical Providers Rights to Payment

In addition to individuals injured in Michigan car accidents, medical providers and health care provdiers have significant rights when it comes to No-Fault insurance claims.  Medical providers include hospitals, doctors, clinics, nurse case managers, attendant care providers, and more.

In the last several years, the Michigan Courts have held that medical providers can make direct claims against a No-Fault insurer. See e.g. Lakeland Neurocare Centers v State Farm Mutual Automobile Insurance Company; 250 Mich App 35 (2002).

            In addition, providers can avail themselves of the penalty provisions within the No-Fault Act. Specifically, the Michigan Courts have held that medical providers may be entitled to 12% penalty interest and attorney fees in cases where they are not promptly paid by No-Fault insurers.  Lakeland, supra; Regents of the University of Michigan v State Farm Mutual Insurance Company and Travelers Insurance Company, 250 Mich App 719 (2002).

            These decisions provide valuable tools for medical providers to use when No-Fault insurers improperly deny claims. However, the statute of limitations under the No-Fault Act is only one (1) year from the date a particular expense is incurred.  This limitation may apply to claims by medical providers. Thus, medical providers are strongly encouraged to audit their accounts to determine if they have any auto accident related claims that have been wrongfully denied, as soon as possible. 

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