Auto No-fault Insurance Issue Heats Up at the Capitol
Posted on September 29, 2017
As promised by elected officials toward the end of summer, the debate over Michigan’s auto no-fault insurance system is heating up in Lansing with the introduction of another no-fault bill in the Legislature. On Sept. 26, Detroit Mayor Mike Duggan, Speaker of the House Tom Leonard (R-Dewitt), Rep. Lana Theis (R-Brighton) and several interest groups held a news conference at the Capitol to introduce House Bill (HB) 5013, a bill that would drastically change Michigan’s auto no-fault law. The introduction of HB 5013 comes on the heels of another auto no-fault proposal introduced Sept. 14 and commonly referred to as the Fair and Affordable No-fault Reform Package (see related article).
An MHA analysis of HB 5013 revealed that the legislation does not adequately protect drivers or guarantee real savings. While the legislation imposes a government-mandated fee schedule on healthcare providers based on Medicare rates, it fails to deliver meaningful rate relief to Michigan drivers opting to keep their current level of auto insurance coverage. Rather, the legislation calls for the creation of new auto insurance offerings that essentially provide fewer benefits and protections for less cost. In a statement about the proposal, MHA CEO Brian Peters called the bill a “nonstarter.”
Testimony on HB 5013 is slated to begin Oct. 5 in the House Insurance Committee, which is chaired by Theis, the bill sponsor. In preparation for what promises to be a busy fall at the Capitol with regard to auto no-fault, the MHA will host a Twitter chat Oct. 4 from noon to 1 p.m. to discuss the auto no-fault issue. The MHA also dedicated the first episode of the MiCare Champion podcast series to auto no-fault with a discussion featuring Laura Appel, senior vice president and chief innovation officer at the MHA, about auto no-fault and its impact on drivers, patients and Michigan’s hospital community.
In the meantime, resources and updates to the auto no-fault issue will be posted to the MHA’s Auto No-fault Insurance webpage. Members with questions about the legislation should contact Chris Mitchell. Members with questions about the upcoming Twitter chat or podcast should email email@example.com.
Posted in: Top Issues - Healthcare