Credit Tracy Samilton / Michigan Radio
Some companies that provide rehabilitation services for people catastrophically injured in car accidents are planning to shut their doors as of July 1.
That's when a 45% cut in medical reimbursements that was included in the 2019 changes to Michigan's auto insurance law takes effect.
"We can't absorb the 45% pay cut and stay in business," says Randal Bruce, President of Aspire Rehabilitation Services, a residential treatment center in Troy. The agency provides everything from housing to physical therapy to counseling. "It's just impossible. We looked at everything we could, there's just no way to do it."
As of June 30, Aspire's 20 residents will need to find other places to live that can provide care for their traumatic injuries, and the company's 50 employees will be out of work.