NCJ Number
74744
Journal
Michigan State Bar Journal Volume: 57 Dated: (January 1978) Pages: 18-25
Date Published
1978
Length
8 pages
Annotation
The history of prepaid legal service plans and a number of such plans in Michigan are discussed.
Abstract
Two types of plans have developed in recent years -- closed panel and open panel. In closed panel plans, the sponsoring groups employ or choose the participating lawyers; in open panel plans, the clients select their own lawyers who are then paid by the groups. The American Bar Association (ABA) originally opposed both types out of fear that unauthorized persons might become involved in the provision of legal services. The ABA was particularly concerned that the sponsoring groups in closed panel plans would exert too much influence over the participating lawyers. Opposition to the ABA position since the 1960's has resulted in acceptance of both plan types. Among the present plans in Michigan is the Michigan Education Association Legal Service (MEALS) which covers 650 State teachers. Members are entitled to up to 28 and one-half hours of legal service per year for their families. Any lawyer can participate and receive $30 to $35 per hour for services. A survey found that 77.7 percent of the clients that the lawyers saw were new clients; 72.4 percent of the lawyers said they would continue in the plan; and 97.67 percent of the users felt that the program was very good or excellent. Another open panel plan (prepaid) relies heavily upon telephone consulting and referral. If the telephone attorney cannot resolve a problem, the subscriber may select a participating attorney who will work for a solution at a fixed hourly rate. The further development of such plans in the State is recommended.