Understanding Recovery of Medical and Therapy Expenses Under Michigan Law

Detailed answer

In Michigan, whether you can recover medical and therapy expenses for ongoing injuries depends on the type of accident, the source of benefits (insurance vs. a lawsuit), and whether you meet statutory thresholds that allow you to sue a tortfeasor. Below are the core rules and how they commonly apply.

Auto accidents — first use your No‑Fault (PIP) benefits

If the injury comes from a motor vehicle accident, Michigan’s no‑fault personal protection insurance (PIP) is the primary source to pay for medical, rehabilitative, and attendant‑care expenses. PIP is designed to cover reasonable and necessary medical care and related services regardless of fault. See the No‑Fault Act provisions on payment of personal protection benefits: MCL 500.3105 and related definitions at MCL 500.3101.

PIP can pay for both past and future medical and therapy costs when those expenses are reasonable, necessary, and causally related to the accident. Your insurer will generally require medical records, treatment plans, and bills to authorize continued or future benefits. Policies and statutory rules limit what PIP will cover (and in some cases impose caps or provider rules), so review your policy and the insurer’s explanations of benefits.

When you can sue the at‑fault driver (tort claim) and recover medical/therapy costs

Under Michigan law, you cannot automatically sue the at‑fault driver for pain and suffering after an auto crash unless you meet the statutory “serious impairment of body function” threshold. If you meet that threshold, you may bring a tort claim for both economic damages (past and future medical and therapy expenses, lost wages, etc.) and noneconomic damages (pain and suffering). See the threshold statute: MCL 500.3135.

If you sue and obtain a judgment or settlement, you can recover reasonable past and future medical and therapy expenses as part of your economic damages. To prove future medical needs you will usually need medical testimony, treatment plans, cost estimates, and frequently a life‑care plan or expert report that ties future therapy/medical care to the accident and explains the reasonableness and necessity of those expenses.

Non‑auto accidents (slips, falls, workplace incidents)

For non‑auto incidents (for example, a slip and fall on a property owner’s premises), you generally may sue the negligent party without a no‑fault threshold. If successful, you can recover past and future medical and therapy expenses as economic damages. The general statute of limitations for personal injury claims in Michigan is three years from the date of the injury: MCL 600.5805.

Practical limits: liens, subrogation, and public benefits

Even when you recover medically related damages, third parties — such as your health insurer, auto insurer that paid PIP benefits, or public programs (Medicare, Medicaid) — may have subrogation rights or liens against your settlement. That means some of the money you recover could be used to reimburse those payers. Federal and state rules govern how Medicare/Medicaid liens work and how private insurers assert reimbursement claims. Ask an attorney to identify liens and negotiate reductions or set‑asides when possible.

Summary — who pays what and when

• Auto accident: First look to PIP for medical and therapy costs (see MCL 500.3105).
• If you meet the No‑Fault Act’s serious impairment threshold (MCL 500.3135), you can sue the at‑fault driver and seek past and future medical/therapy expenses as economic damages.
• Non‑auto negligence claims do not require that threshold; you can sue for medical/therapy costs if you prove causation and damages.
• Recovered amounts may be reduced by liens, subrogation, or statutory offsets; work with counsel to clear these issues before settling.

Evidence you’ll need to recover ongoing medical and therapy costs

To secure compensation for ongoing treatment you should collect:

• Complete medical records and provider notes that link treatment to the accident;
• Itemized medical bills and proof of payments;
• Treatment plans and physical/occupational therapy schedules;
• Expert opinions or a life‑care plan estimating future medical and therapy needs and costs;
• Documentation of any loss of earnings or reduced earning capacity;
• Photographs, incident reports, and witness statements supporting causation and severity.

Practical steps to protect your right to recover

1. Seek prompt medical care and follow prescribed treatment. Delayed or sporadic care makes it harder to prove ongoing injuries.
2. Keep all bills, receipts, and treatment notes in one folder (digital copies help).
3. Notify your auto insurer immediately after a crash to start PIP claims (auto accidents).
4. Carefully read insurance explanations of benefits and any denials; appeal denials with medical support.
5. Preserve evidence (photos of scene, vehicle damage, clothing, witnesses’ contact info).
6. Avoid signing full releases or accepting a settlement before identifying liens and future care needs.
7. Consult an attorney experienced in Michigan personal injury and No‑Fault claims early, especially if you have ongoing or expected future needs.

Helpful hints

• Start PIP even if you plan to sue — PIP pays medical bills immediately while litigation proceeds.
• Ask your treating physician for clear notes about causation and expected future therapy frequency/duration.
• If an insurer questions the necessity of ongoing therapy, get a second opinion or independent medical evaluation.
• When negotiating settlement, insist on accounting for future medical needs; consider structured settlements or medical liens to protect funds for ongoing care.
• Be aware of the 3‑year statute of limitations for most personal injury suits in Michigan (MCL 600.5805).
• Keep records of nonmedial costs related to recovery (transportation to therapy, home modification estimates) — these can be part of economic damages in a tort claim.

Disclaimer: This article explains general principles of Michigan law and is for informational purposes only. It is not legal advice and does not create an attorney‑client relationship. For guidance about your specific situation, contact a licensed Michigan attorney who can review your facts and counsel you about options and timelines.