by Austin Marsman
We all know it. Michiganders pay outrageous amounts in auto insurance. The Michigan State House early Thursday morning passed Auto Insurance “reform” legislation (House Bill 4397).
I have many issues with the bill — and I’m not trying to be partisan.
First, it was pushed through at 2:09 a.m. with no hearings, some not seeing a final bill. Legislators were running on little sleep and important hearings on other topics were canceled as the night dragged on. Amendments were rejected without a roll call vote. This isn’t how things should be done. Ever.
Second, this is painted as a fix to Michigan’s broken auto insurance. It is not. When you read the actual bill, it puts trust in the insurance companies to not raise our rates next year with the what is basically a handshake. These are the same companies that can always find you when it’s time to pay your bill but forget to call you when you have a claim that needs to be reimbursed. The same insurance companies that will now get to decide your medical care instead of your doctor.
State Rep. Yousef Rabhi (Ann Arbor) said it well, telling MLIVE: “Do we stand with insurance companies to give them what they want,” asked Rep. Rabhi, “These are the companies who have been screwing our constituents time and time again and we’re letting them off the hook.”
The ball is in the insurance company’s court and I don’t trust them. I would’ve liked to see prohibition on the insurance companies using non-driving factors, such as credit scores, gender and ZIP codes. I would’ve liked to see a compromise, not a legislature playing politics simply because of their majority.
This bill appears to put profits over the people. Our representatives work for us, not insurance companies. If this was a bill that Lansing was proud of, why wouldn’t they pass it in the daylight and hold public hearings on the bill?
The choices presented in this bill are false choices.
I am disappointed in my State Representative, Mary Whiteford’s, vote, If you share my sentiment, please call her office at 517-373-0836 and visit mobile office hours which will be held Friday, May 17. The Representative will be at the Fennville District Library from 10-11 a.m. and the Allegan Transportation Center from noon to 1 p.m. Ask her the tough questions — it’s her job to answer.
I hope the Governor sends the legislature back to the drawing board on this and fix the darn auto insurance system.
EDITOR’S NOTE: Austin Marsman is a 19-year-old from Martin pursuing a bachelor’s degree in political science and public administration from GVSU. He is also a former writer for townbroadcast. The views expressed here are his own.
Now time for some truth.
Every penny of rate charged by Michigan auto insurers since 1956 has been APPROVED after review by the Michigan Department of Insurance and Financial Services.
Insurers that insure vehicles in Michigan do not make any profit on Auto Coverage. They simply charge what it costs to do business here in order to bundle auto insurance with other policies that they want to sell at a profit.
Michigan’s No-Fault Auto insurance scheme has been utterly broken by the sheer weight of greed, theft and fraud by Medical Providers and Attorneys whose businesses are built on robbing the citizens of Michigan through Michigan No-Fault.
The best thing that could happen to Michigan’s auto insurance is for no-fault to be declared unconstitutional and ended in favor of tort liability just like in Indiana, Ohio, California, Illinois and many, many other states. No-Fault is a failure, an epic failure.
Governor Whitmer says she is “through playing games”, she is in fact a liar. She is playing games with road funding and with the worst part of driving in Michigan; auto insurance. She playing the game of “protect the corrupt special interests that got me elected”…Not the lowest income people of Michigan that she claims to serve. Don’t believe me? Look and think rationally about her fuel tax proposals and her utter stonewalling of any kind of reform of Michigan No-Fault. Governor Whitmer is crazy-eyes loyal to Trial Lawyers and the legal-medical industry built around the pile of money they steal from Michigan’s drivers.
What was the idea behind no-fault insurance? It certainly wasn’t to provide good, safe drivers with lower rates. With unlimited health coverage, the cost is now higher than any other state.
I agree we should go back to insurance with common sense – if you are in an accident and not your fault, the at fault person’s insurance should pay. And medical should be limited the a common sense total, not millions for years.
In theory it was to have injury claims from Automobile losses handled outside of courts (didn’t happen). Injury claims are regularly pursued and need to be defended or settled in addition to the carrier paying all the medical costs until the MCCA picks up.
Unfortunately, Michigan no-fault is no-fault in name only because it preserved the right to collect from an at fault driver when the injured claimant sufferers permanent serious disfigurement, death or impairment of a body function. Its the last one that has been used to ruin no-fault. So No Fault has to do too many things including defend and protect too many “at-fault” drivers. Possibly, the fantasy cost savings imagined could have been realized if injured parties had no recourse Michigan adopted truly pure no-fault, but it did not.
The following comes from a Michigan Bankers Association news release. Despite Mr. Marsman’s comments this issue was very much discussed and worked out by multiple parties in both legislative bodies and the Governor. It received overwhelming majorities in both houses. Credit Sen Aric Nesbitt for placing a high priority on moving this issue to the top of the pile.
During a rare Friday session and after hours of negotiations, Governor Gretchen Whitmer, Speaker Lee Chatfield (R – Levering) and Senate Majority Leader Mike Shirkey (R – Clarklake) reached an agreement on what auto insurance in Michigan looks like. Both the Michigan House and Senate passed SB 1(Nesbitt) on votes of 94:15 in the House and 34:4 in the Senate.
The bill mandates insurers lower their rates, provide customers choice on personal injury protection (PIP) and stop using certain non-driving factors when setting rates. The bill, which ended up being 120 pages long, implements a hospital fee schedule that starts July 1, 2021 which will pay out 200% of the Medicare reimbursement rate on those vehicle crash victims that hospitals care for. The exact percentage will be based on the volume of Medicaid patients and victims seen. In addition, the rate rollbacks are required for the next eight years and it will mandate that low-income residents and those with very high-deductible plans purchase additional health insurance to cover costs.
The bill specifically does the following:
• Authorizes four different PIP coverage options (unlimited lifetime coverage, $500,000 limit, $250,000 limit, and a $50,000 limit for those on Medicaid. Seniors on Medicare and those with specific health insurance can opt out altogether from having to purchase PIP coverage;
• Gender, marital status, zip codes, credit scores, homeownership, education level and occupation will all be banned rating factors;
• Insurers must file rates with the Department of Insurance and Financial Services (DIFS) and cannot use those rates until they have been approved by DIFS or 90 days has passed (whichever comes first). If DIFS disapproves, the insurer has 15 days to refile a rate in compliance with a DIFS order.
• Establishes an anti-fraud unit as a criminal justice agency within DIFS.
o Allows the anti-fraud unit to conduct criminal background checks on applicants for insurance licenses and current licensees, collect and maintain claims of criminal and fraudulent activities in the insurance industry and investigate claims of criminal and fraudulent activity in the insurance market, among other things;
o Allows the DIFS Director to share and receive documents, materials, or information related to investigations;
o Requires the anti-fraud unit to prepare and give to the Legislature an annual report on the unit’s efforts to prevent automobile fraud.