MHA Issues Action Alert following Senate Approval of Auto No-fault Bill

Posted on May 08, 2019

On May 7, the Michigan Senate approved legislation that would eviscerate Michigan’s auto no-fault insurance law. Earlier in the day, the Senate Committee on Insurance and Banking helped set Senate Bill (SB) 1 on a fast track by reporting the measure to the full Senate for consideration following a swift review of the proposal. After a brief floor debate highlighting the pros and cons of the proposal, the bill passed the Senate on a 24-14 vote.

SB 1 includes several provisions as highlighted below:

  • No rate reductions of any amount required for insurers.
  • Fixes elements of the Covenant decision, but doesn’t do anything retroactive and doesn’t specifically address the court decision itself.
  • Allows people with health insurance that covers injuries sustained in auto accidents to completely opt out of PIP.
  • Provides coverage choices of $50,000 for longer-term needs plus $200,000 for trauma care until stable OR $250,000 as a whole.
  • Implements workers’ compensation fee schedule for all provider payments.
  • Implements self-determined utilization review by the insurers.
  • Includes harmful changes to the assigned claims facility, which protects people who rightfully don’t have auto insurance but who are injured in a car accident (for example, someone on a bike or a pedestrian who doesn’t own a vehicle).

MHA CEO Brian Peters issued a media statement following the committee’s action, calling the move “a shocking step backward.” In addition, the MHA is urging members to contact their elected officials as quickly as possible to remind them of the serious consequences SB 1 could inflict on both accident survivors and providers.

SB 1 will now be referred to the Michigan House of Representatives for consideration. House leadership has indicated that SB 1 is not a bill they would support and that they are taking a much more thoughtful approach to auto no-fault reform than the Senate.

Members with questions may contact Chris Mitchell or Adam Carlson at the MHA.

Tags: auto no-fault, Brian Peters, auto insurance, advocacy, SB 1, HB 4397

Posted in: Issues in Healthcare, Member News, Top Issues - Healthcare

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