Have You Signed An Assignment of Benefits?

Ali A. Ajrouch, Esq.
Have You Signed An Assignment of Benefits? | The Law Offices of Joumana Kayrouz, PLLC
phone: (248) 557-3645 fax: (248) 200-0645 email: aajrouch@wordpress-388761-3181353.cloudwaysapps.com 1000 Town Center, Suite 800 Southfield, MI 48075
In May 2017, there was a significant change in the law when it came to medical providers of auto accident victims. Prior to that, medical providers could bring direct causes of action against auto insurance companies for unpaid medical bills related to motor vehicle accidents. In May 2017, the Michigan Supreme Court decided that these providers could not bring a direct action; however, it did mention that assignments may permit providers to bring an action against the auto insurance companies. Covenant v. State Farm.
This led to a monumental change in the landscape of No Fault claims. Suddenly, many medical providers were requesting patients to sign assignments. In exchange they would promise that the patient did not have to collect on their bill. However, it is important for you to know that if you are signing these assignments, you must sign them AFTER your treatment is complete. This is because your assignment can only apply to treatment in the past and present. In other words, you cannot assign future benefits. Therefore, if you know you have been signing these assignments of rights, make sure you know what you are signing for. Also, if you do not want to worry about pursuing payment of the medical bill on your own, make sure you signed an assignment after your last date of treatment.
It should be noted that this only applies to older dates of treatment. As of June 11, 2019, the passing and enumeration of the new No Fault Statute allows Michigan providers to once again bring a direct cause of action. MCL 500.3112.


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