Michigan Senate to approve plan to cut car insurance rates
No other
The Republican-backed measures, which were pending on the
"The current system's really failing
Measures also would curtail how car insurers must pay much more than health insurers do for the same medical services — another factor driving overall claim costs — crack down on fraud with a task force and make other changes such as limiting "judge shopping" by people who sue insurers.
The Republican-led House is working to craft legislation, too, while Democratic Gov.
The
"I don't think anybody in the state benefits if we reduce the coverage and your costs stay the same, especially for such a drastic reduction" in PIP coverage, said Sen.
Nesbitt said a government-ordered reduction is not needed because insurers' costs would be lowered under the proposed law and they would have to justify their new rates to the state
It would be "foolish," he said, to force an "arbitrary" rate reduction without knowing how people would select their level of PIP benefits.
Under the main bill, drivers could opt out of personal injury coverage or choose between at least two required offerings from insurers —
Nesbitt estimated the per-vehicle fee that drivers pay to the MCCA — which will rise to a record
A group of health providers, plaintiffs' lawyers and patient advocates opposed the legislation, calling it a "giveaway" to the insurance industry.
"The auto insurance industry in
Auto insurers complain that they are charged more by hospitals and providers than are health insurers, and those expenses are passed on to drivers. The bills would create a fee schedule similar to what exists for workers' compensation injuries.
The movement in the Legislature came against the backdrop of increasing angst over the state's expensive premiums.
"We mandate they buy unlimited lifetime medical insurance whether they want it or not," she said. "They have choice in every other area of their lives except this one."
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