Medical Providers Now Being Named in No-Fault Policy Rescission Lawsuits

There’s a notable shift underway in Michigan’s no-fault insurance litigation. Insurers are no longer limiting their rescission lawsuits to policyholders—they’re now also naming medical providers as defendants in efforts to avoid paying claims.

What This Means for You

• You could be served: If an insurer claims a patient made a material misrepresentation (like an incorrect garaging address or an unlisted driver), they may file a lawsuit that includes the treating provider.
• Ignoring is not an option: Failing to respond to a complaint can result in a default judgment. Courts may then apply the rescission to block both current and future PIP claims tied to that patient.
• You can fight back: Responding promptly—and filing a counterclaim when appropriate—can protect your right to payment and shift pressure back onto the insurer.
• Deadlines matter: These cases are usually filed in circuit court. You typically have 21 days to respond (28 if served by mail). Missing that window can cost you your defenses.
• Engage your legal team: If you’re served, notify your attorneys immediately so they can act quickly to protect your interests.

What You Should Do Now

1. Inform your team of this alert: Make sure front-desk and billing staff know to flag and forward any legal documents to your legal or risk management team right away.
2. Get legal counsel involved early: Your attorneys can file the necessary paperwork, preserve your defenses, and assert counterclaims to recover your charges.
3. Review your open claims: Identify patients whose insurers have denied coverage based on alleged fraud or misrepresentation. These are the most likely to trigger lawsuits.

Bottom Line

For these rescission cases where you’ve been named as a defendant, vigilance and immediate engagement of legal counsel are your best tools to protect revenue and ensure patients continue to receive uninterrupted care.

If you have any questions about this client alert, please contact any member of the Miller Johnson Medical Reimbursement Group.