State Rep. Garcia wary of current auto insurance reform legislation

Nov. 02--State Rep. Daniela Garcia, R-Holland, announced she is in support of reforms to Michigan's auto no-fault insurance system focused on protecting consumers, but warned against current legislation proposed to do so.

House Bill 5013 is currently being debated in the Michigan House and seeks to make reforms to the no-fault insurance system.

"I am supportive of lowering car insurance rates for Michigan drivers, however, after carefully studying House Bill 5013 and the amendments added in committee, I am convinced that all consumers in our state will not be protected under this language," Garcia said in a press release.

"This bill shifts costs from car insurance companies to taxpayers and does not provide a comprehensive solution to the high rates we all pay."

According to the press release, the bill lowers risk for automobile insurance companies by creating a three-tiered structure that forces policyholders to choose a level of personal injury protection.

Policyholders would decide whether to keep their current unlimited benefit or reduce their maximum personal injury protection coverage to a cap of $500,000 or $225,000.

"Senior citizens should be wary of this plan," Garcia said. "HB 5013 will shift costs for care for seniors from their automobile insurance company to Medicare and Medicaid. Medicare does not offer long-term or attendant care options and to qualify for Medicaid an individual must spend down their assets. I don't think bankrupting senior citizens by forcing them into government programs is the best decision to make."

The non-partisan House Fiscal Agency estimates that within a few years the costs to the state for the Medicaid program will increase to $80 million annually, according to the press release.

"I have been to thousands of homes and held monthly office hours since being elected state representative and have listened carefully to my constituents," Garcia said.

"I want to make sure that any plan that we pass in Lansing adequately protects consumers injured in car accidents, provides overall lower rates for drivers, cuts down on fraud and abuse, provides transparency and refunds of the Michigan Catastrophic Claims Association. I remain committed to work with my colleagues on behalf of my constituents to develop a plan that benefits all Michigan consumers."

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