Michigan Office of Administrative Hearings and Rules  
611 W. Ottawa Street  
Lansing, MI 48909  
Phone: 517-335-8658 Fax: 517-335-9512  
AGENCY REPORT TO THE  
JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)  
1. Agency Information  
Agency name:  
Insurance and Financial Services  
Division/Bureau/Office:  
Insurance  
Name of person completing this form:  
Catherine Hart  
Phone number of person completing this form:  
248-982-9425  
E-mail of person completing this form:  
Name of Department Regulatory Affairs Officer reviewing this form:  
Sarah Wohlford  
2. Rule Set Information  
MOAHR assigned rule set number:  
2020-114 IF  
Title of proposed rule set:  
No-Fault Fee Schedule  
3. Purpose for the proposed rules and background:  
These rules implement Section 3157 of the Insurance Code of 1956, MCL 500.3157, which  
establishes a fee schedule applicable to health care providers that provide services to people injured in  
motor vehicle accidents. These rules do the following: 1) define the applicable Medicare schedule; 2)  
establish procedures for determining which health care providers are entitled to enhanced  
reimbursement rates; 3) establish procedures for the department to collect information related to rates  
charged by health care providers as of January 1, 2019, for the purposes of calculating reimbursement  
rates; 4) establish a date and methodology for determining the adjustment of reimbursement rates;  
and 5) establish procedures for the department to administer the accreditation requirements under  
Section 3157.  
4. Summary of proposed rules:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 2  
This is a new rule set that implements the provisions of MCL 500.3157 by doing the following: a)  
defining the applicable Medicare fee schedule; b) establishing procedures for determining which  
health care providers are entitled to enhanced reimbursement rates; c) establishing procedures for the  
department to collect information related to rates charged by health care providers as of January 1,  
2019, for the purposes of calculating reimbursement rates; d) establishing a date and methodology for  
determining the adjustment of reimbursement rates; and e) establishing procedures for the department  
to administer the accreditation requirements under MCL 500.3157.  
5. List names of newspapers in which the notice of public hearing was published and  
publication dates:  
Lansing State Journal: March 10, 2021  
The Oakland Press: March 10, 2021  
Escanaba Daily: March 10, 2021  
6. Date of publication of rules and notice of public hearing in Michigan Register:  
3/15/2021  
7. Date, time, and location of public hearing:  
3/26/2021 09:00 AM at This public hearing will be held virtually via Microsoft Teams to receive  
public comments while complying with measures designed to help prevent the spread of Coronavirus  
(248) 509-0316 (Conference ID: 134264067#)  
8. Provide the link the agency used to post the regulatory impact statement and cost-benefit  
analysis on its website:  
9. List of the name and title of agency representative(s) attending public hearing:  
Sarah Wohlford, Senior Deputy Director  
Catherine Hart, Administrative Law Specialist  
10. Persons submitting comments of support:  
There were no express comments in support of the rule set.  
11. Persons submitting comments of opposition:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 3  
The following persons submitted comments of opposition to the rules independent of the statutory  
impact:  
•Lisa Andreozzi (Medata)  
•Tom Judd (Michigan Brain Injury Provider Council)  
•Tim Hoste  
•Katie Tucker (Coalition Protecting Auto No-Fault & Health Partners, Inc.)  
•Jason Groth  
•Melissa Sharp  
•Alexandria Gillespie  
•Debra Emery  
•Deborah Walker  
•Jordan Badley  
•Rosie Pung  
•Michael Barnhard  
•Kathleen Coll  
•Julie Novak (Michigan State Medical Society)  
•Trish Szymanski  
•Michelle Heskett  
•Lenny Treece  
•Monica J. Van Acker  
•Elizabeth Piner  
•Tammy Hannah  
•Dennis Atkins  
•Christa Rolando  
•Lesli Rhoton  
•Joe Richert  
•Kevin Smith  
•Sarah Gibbs  
•Emma Zubeck  
•Jenna Dost  
•Erica Coulston  
12. Identify any changes made to the proposed rules based on comments received during the  
public comment period:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 4  
Name &  
Comments made at Written  
Agency Rationale Rule number  
Organization public hearing  
Comments  
for change  
& citation  
changed  
Statutory  
1
Julie Novak,  
Michigan State  
Medical  
Society; Katie  
Tucker, on  
behalf of  
Statutory  
The draft rules  
authority to  
promulgate the  
rules is  
erroneously cited authority  
the Public Health citation.  
Code. The  
rulemaking  
authority is in  
erroneous.  
Coalition  
MCL 500.210.  
Protecting Auto  
No-Fault and  
Health Partners,  
Inc.  
2
Michele  
Hibbert,  
Mitchell  
International,  
Inc.  
Date of  
R 500.201(h) was R 500.201(h)  
amended to clarify  
that the applicable  
Medicare fee  
schedule is the one  
in effect on March  
1 of the service  
year in which  
applicable fee  
schedule is  
necessary to  
ensure  
consistency.  
services are  
rendered. R  
500.201(j) was  
added to provide a  
definition of  
“service year.”  
3
4
Michele  
Database to be  
used should be  
specifically  
named.  
R 500.205 was  
amended to name  
FAIR Health’s  
database.  
R 500.205  
Hibbert,  
Mitchell  
International,  
Inc.  
Insurance  
Alliance of  
Michigan  
Applicable  
Medicare fee  
schedule should that the Medicare  
R 500.203(1) was R 500.203(1)  
amended to clarify  
be clarified.  
fee schedule to be  
used is the  
participating fee  
schedule.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 5  
5
R 500.205 was  
R 500.205  
Katie Tucker,  
on behalf of  
Coalition  
Addition of  
“regional  
average”  
amended to clarify  
that the provider is  
not required to  
Protecting Auto  
No-Fault and  
Health Partners,  
Inc.  
provision  
supply a “regional  
imposes a burden average”; rather,  
on providers and DIFS will consult  
exceeds the scope the FAIR Health  
of the No-Fault database to  
Act.  
determine an  
average amount  
for the applicable  
geozip for  
providers that do  
not have a charge  
description master  
or average amount  
as of January 1,  
2019; or when  
there is a new  
service or product  
that did not exist  
on January 1,  
2019. DIFS will  
do so only in  
connection with a  
provider appeal  
under MAC  
500.65. R 500.201  
(i) was struck as  
the definition of  
“regional average”  
is no longer  
needed.  
6
Katie Tucker,  
on behalf of  
Coalition  
Protecting Auto  
No-Fault and  
Health Partners,  
Inc.  
Rule allowing for R 500.203(2) was R 500.203(2)  
disclosure  
stricken.  
exceeds scope of  
No-Fault Act.  
13.Date report completed:  
5/17/2021  
MCL 24.242 and 24.245  
;