Auto No-fault Bill Moves Out of Committee

Posted on October 26, 2017

Michigan's Auto No-Fault System bannerThe House Committee on Insurance on Thursday, Oct. 26, reported an H-1 substitute for House Bill (HB) 5013 to the full House of Representatives. The bill moved to the floor with nine out of 11 Republicans voting in favor of the latest version of the bill; no Democrats voted in favor of the bill.

HB 5013, opposed by the MHA and most other no-fault supporters, would make drastic changes to Michigan’s no-fault system while promising premium cuts for drivers who choose to cut their personal injury protection benefits. The legislation would allow drivers to purchase as little as $25,000 in emergency care PIP benefits, implement a Medicare-based fee schedule for providers and more, yet would not eliminate certain discriminatory nondriving factors insurers use to set premiums, or provide real long-term savings for drivers.

After sitting in committee without action for two weeks, amendments were adopted that gave supporters the votes they needed to move the bill. The latest version of HB 5013 includes the following changes:

  • A provision adding a small rate reduction for the remaining benefit plans, which consists of a 10 percent savings on the PIP portion of existing plans and a 20 percent savings on the PIP portion of the $500,000 benefit plan created in the bill. Language allowing insurers an out in providing any rate relief to Michigan drivers remains in the current version of the bill.
  • A slight increase in the healthcare fee schedule for ambulance providers to 125 percent of Medicare rates.
  • Several technical amendments clarifying language in the bill that don’t drastically change the major provisions in the legislation.

In response to the committee’s action, MHA CEO Brian Peters issued a media statement expressing the MHA’s continued opposition to HB 5013. The MHA also testified against HB 5013 two weeks ago and is engaged in digital, social and traditional earned and paid media activities to shine light on the shortcomings of HB 5013. The MHA’s ads can currently be seen on Facebook, Instagram, YouTube, Comcast Digital, as well as network and cable television in key House districts. Members can view the television ads anytime on the MHA’s YouTube page and can also review talking points on HB 5013 on the MHA’s no-fault Web page.

Featured in Monday Report. Click to view the full edition. A potential floor vote on the bill is expected as early as next week. Members are encouraged to contact their House members and urge them to reject HB 5013 because it doesn’t truly protect drivers or patients. As the full House of Representatives begins debate on HB 5013, the MHA will keep members apprised of its ongoing political and public relations activities related to no-fault.  

Members with questions may contact Chris Mitchell at the MHA.


  • Auto No-fault Bill Moves Out of Committee

Tags: auto no-fault, auto insurance, House Bill 5013, Auto No-fault Reform

Posted in: Issues in Healthcare, Top Issues - Healthcare

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