Michigan Automobile Insurance Reform 2019
Here we go again. The Michigan Legislature has introduced automobile insurance reform laws to”right” that the inadequacies of Michigan’s present car insurance laws. While insurance reform is required in Michigan, I visit several debatable issues in the present laws (Senate Bill 0001) as passed by the Michigan Senate Republicans on May 7. Governor Whitmer has threatened to veto the law as it is written, but I will provide my insights before that occurs.
- Lifting the mandate on PIP policy where motorists have been insured under a key healthcare coverage won’t decrease the amount of uninsured motorists; instead, it is going to increase it. As with other provisions in the bill, there’s a lack of specificity regarding how the condition will confirm a motorist is insured under a medical insurance program. Plans lapse, policies perish, individuals change jobs, etc.. It’s inconceivable regarding how the country could track the insured status of its own drivers. It’s more probable that motorists will declare they are insured under a healthcare plan to prevent paying for No-Fault medical care.
- there isn’t any proof or data I’ve seen the transitioning of automobile insurance into a cafeteria-style strategy will amount into the”estimated savings” discussed. But if motorists were needed to buy a minimum of 250,000. 00 in main car coverage with surplus costs being paid by their medical insurance provider or Medicare, this might indicate the need for the Michigan Catastrophic Claims Association (MCCA), making immediate savings to motorists.
- While I really do believe that fee schedules must be adopted to limit the amount a doctor or hospital may charge for a health care provider, the employees compensation fee schedule is much too restrictive. If the fee programs resemble the employees compensation version, I would expect that lots of medical centers would only opt out of providing care to automobile crash victims thereby restricting access and healthcare options to people who were severely hurt. A fee schedule such as the payoff rates of Blue Cross Blue Shield and Medicare would be more palatable to healthcare providers.
Vince Colella is a personal injury and civil rights lawyer and managing partner at Southfield, Michigan-based Moss & Colella.
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