Legislators Discuss New No-fault Legislative Package at News Conference

Posted on September 15, 2017

Note: This article has been updated because the Twitter chat mentioned will be rescheduled for a later date.

A bipartisan group of legislators announced the first “official” auto no-fault insurance bill package this fall during a news conference Sept. 14, casting the first stone in what promises to be a volley of legislative activity on auto no-fault reform this fall. The news conference came on the heels of an EPIC MRA poll commissioned by the MHA and released Sept. 13 about Michigan voters disapproval of redlining, a practice used by many auto insurers that considers factors other than driving records when setting premiums (see related article).

Most of the bills that make up the Fair and Affordable No-fault Reform Package are still being drafted, but legislators participating in the news conference indicated they expect the bills to be completed and introduced in the next week or two. Based on comments made by both Republicans and Democrats in attendance, the proposals will include the following:

  • Fee schedules for medical costs related to auto injuries and attendant care limits. In addressing a question about fee schedules from an audience member, Rep. Edward Canfield (R-Sebewaing) indicated that Level 1 trauma centers may be omitted from the fee schedule requirement, but the details of that have yet to be determined.
  • Stopping the use of nondriving related factors in determining auto insurance rates.
  • Public availability of the Michigan Catastrophic Claims Association’s ratemaking data.
  • Creation of a state anti-fraud authority to monitor fraud and abuse.
  • Addressing the Covenant v. State Farm Michigan Supreme Court decision.

House Bill 4672, sponsored by Rep. Joseph Graves (R-Linden), was the only active bill mentioned as being included in the package. Graves participated in the news conference.

Since the majority of the bills that will comprise the Fair and Affordable No-fault Reform Package have yet to be introduced, the MHA does not currently have an official position for or against the legislation. However, the MHA Board of Trustees currently maintains a position against the use of government-mandated fee schedules for auto no-fault insurance.

More auto no-fault reform proposals are expected this fall, based on comments from a number of elected officials, including Detroit Mayor Mike Duggan, House and Senate leaders and Gov. Rick Snyder, about auto no-fault being a legislative priority. Which of these proposals gain the political support to move through the legislative process remains to be seen.

In the meantime, the MHA will keep members apprised of the latest activity on auto no-fault reform. As part of that effort, the MHA will host a Twitter chat to help educate members and the general public about the state’s auto no-fault law and the legislative efforts to reform the current system.  No-fault experts will be on hand to discuss the following topics and more.

  • Why Michigan has a no-fault system in place
  • The medical costs related to patient care for those injured in car accidents
  • Tips for how consumers can tell whether a legislative bill will lead to meaningful rate reduction in auto insurance premiums

Stay tuned for the rescheduled date and time. Those interested in participating can contact Stephanie Stocking at the MHA for more information. 

Featured in the MHA Monday Report. Click to view the full edition.Members with questions about the legislative efforts related to auto no-fault should contact Chris Mitchell at the MHA, and those with questions about the Twitter chat should contact Stephanie Stocking at the MHA.

Tags: auto no-fault, auto insurance, Twitter, Twitter chat

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