In the published decision of Centria Home Rehabilitation, LLC v Allstate Insurance Company, on remand from the Supreme Court, the Court of Appeals was directed to apply the post-amendment version of MCL 500.3112 when determining whether Plaintiff-provider Centria Home was entitled to recover additional reimbursement of PIP benefits from Defendant-insurer Allstate for attendant care services Centria provided to Allstate’s insured, Linda Frisch.
Frisch was seriously injured in a 2018 motor vehicle accident, leaving her unable to care for herself. Centria hired Frisch’s daughter, Diana Irons to provide attendant care services. Centria paid Irons a rate of $10/hour. Frisch assigned her rights to payment for PIP benefits to Centria and Centria billed Allstate for the attendant care services at $34/hour. Allstate paid Centria at $25/hour and Centria sought to recover the balance of what it billed.
The Court of Appeals, on remand, affirmed that Centria had a right to pursue PIP benefits directly from Allstate, and noted that the attendant care services at issue in this case were provided in 2020 and 2021 such that the amended version of MCL 500.3112 applies. Pursuant to MCL 500.3107(1)(a), as well as Douglas v Allstate Ins Co, 492 Mich 241, 256; 821 NW2d 472 (2012), PIP benefits are payable for reasonable charges incurred for reasonably necessary services for an injured person’s care, recovery, or rehabilitation. For charges to be incurred, the insured must actually have received the services and become liable for them. Whether charges were “incurred” can be shown by various means, including a contract for products and services or a paid bill.
The Court concluded that Centria could only seek reimbursement for charges actually incurred by Frisch, yet, Centria failed to show that it actually charged Frisch $34/hour for the services. Centria did not present any documentary evidence such as a contract or language in the assignment. Therefore, Cenria failed to prove that the $34/hour charge was ever incurred and summary disposition in favor of Allstate was properly granted.
