University Medical system denied reimbursement for patient's medical care
The University of Michigan lost its claim against Titan Insurance Company for expensive treatment provided to an uninsured man severely injured in a motor vehicle collision. It would have been paid in full if it had sued Titan within one year of the injury, however, at that time, the Supreme Court had held that suit could be delayed until one year after the insurer denied payment.A few years ago, the Republican activists on the Michigan Supreme Court held that the limitation is a firm "one year back" from the date an expense is incurred, and it refused to make an exception for governmental entities providing treatment. This amounted to a windfall for a number of auto insurers (who by the way are recording record profits in Michigan--see earlier web log entries on that subject). In a dissenting opinion, Judge Alton Davis noted the ludicrous distinction drawn in an earlier decision between a provider "bringing" an action and "recovering" in an action, and would not have insulated Titan from paying the damages it owed.
The majority allowed a private debt owed by Titan to be dropped on a public entity, instead. Another example of arch conservatives preaching "smaller government" and lower taxes, and then acting in a manner that undercuts that goal to protect a source of political contributions.