Michigan Senate Approves Auto No-fault Legislation

Posted on June 07, 2018

Michigan's Auto No-Fault SystemThe Michigan Senate approved a two-bill legislative package June 7 to reform major components of Michigan’s auto no-fault insurance law.

Senate Bill (SB) 787 would allow senior citizens to opt out of purchasing personal injury protection (PIP) coverage. SB 1014 would do the following: establish a state agency focused on auto insurance fraud, housed within the attorney general’s office and subject to the Freedom of Information Act; cap payments of home family-based attendant care coverage at $15 per hour once it exceeds 56 hours a week; and limit coverage for assigned claims beneficiaries to $400,000. Overall, the bills would not cap benefits for insured drivers and their families, nor would they implement a government-mandated provider fee schedule — both priority issues of the MHA Board of Trustees.

While the MHA supports SB 1014, as it closely resembles the agreement reached by the MHA, the auto insurers and Senate Majority Leader Arlan Meekhof during the 2016 lame-duck session, the association has identified some areas in need of improvement in SB 787. For example, regarding the senior PIP opt-out provision offered in SB 787, the MHA would like legislators to change the language to ensure seniors are able to access wrap-around services that are not covered by Medicare should they opt out of PIP. Given these outstanding issues, the MHA will continue to oppose SB 787. However, should the association’s concerns be addressed, the MHA may be able to support the entire legislative package.

The bills are now up for consideration in the Michigan House of Representatives. However, House leaders have not stated any intent to take up the bills prior to the November election. The MHA will keep members informed should additional action be taken on the legislation. Members with questions should contact Chris Mitchell at the MHA.


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  • Michigan Senate Approves Auto No-fault Legislation

Tags: auto no-fault, auto insurance, advocacy

Posted in: Issues in Healthcare, Top Issues - Healthcare

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