Michigan House approves bill to cut auto insurance premiums
The move set the stage for a potential showdown with Democratic Gov.
"The goal here is to get a signature by the governor and deliver rate relief for the people of our state. We're going to have the conversations that are necessary to make that happen," said Speaker
A recent study showed that
"It affects the people who live in every one of our communities. We have been overpaying for decades, and people are demanding a change," said Rep.
While the House vote was a big step forward in efforts to cut premiums after years of legislative stalemates, the bill's prospects were uncertain. Majority
Many of her Democratic allies in the House blasted the insurance legislation, and criticized how it was unveiled and approved within a matter of hours with no public review or committee testimony.
"If our constituents are angry now about their insurance rates, imagine how angry they'll be when they realize that with the bill before us at it stands, their rights and benefits have been taken away — given away — and our rates haven't really been lowered," said Rep.
Under the measure, people opting out of unlimited medical coverage and instead choosing between
The bill would stop car insurers from having to pay much more than private and public health insurers do for the same medical services, a factor driving claim costs. They would follow a fee schedule similar to what exists for workers' compensation injuries.
The legislation also would direct state insurance regulators to write rules banning the use of non-driving factors if there is no "rational correlation" with insurance losses.
"The insurance companies got a gift today," said House Minority Leader
After the five-year period of mandated lower premiums,
The bill would also create a task force to target fraud, limit reimbursement for family attendant care and no longer let insurers use sex as a rating factor when pricing policies issued on a group basis.
Three of 52
Reaction from key players in the auto no-fault system was mixed.
The
Chatfield said the fact that the insurance and health industries are "uncomfortable" with parts of the legislation indicates "we have struck an excellent balance."
Online:
House Bill 4397: http://bit.ly/2Wz5nbE
Follow Eggert on Twitter at https://twitter.com/DavidEggert00


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