A framework of bills called the "Fair and Affordable No-Fault Reform Package" was introduced last week.
The bills are described as "among the most comprehensive auto insurance reform packages to be introduced in the past 10 years."
The effort to announce the bills is being led by Representatives Frederick, Webber, Lasinski and Gay-Dagnogo, with each bill having a bipartisan cosponsor.
The package also includes two previously introduced bills. House Bill 4672 creates a fraud authority designed to help lower rates by cracking down on auto insurance fraud.
House Bills 4049 will bring more transparency to Michigan's car insurance system by requiring the Michigan Catastrophic Claims Association to publicly disclose the actuarial calculations used to set the annual fee it charges to every insured vehicle in the state.
"These bills provide a great framework for making lasting improvements to Michigan's no-fault auto insurance system," said CPAN President John Cornack. "While we are still analyzing the language of the recently introduced bills, we believe this package offers the best opportunity to make auto insurance more fair and affordable for every single driver across the state."
"There are many factors driving Michigan's high auto insurance rates, including fraud, unfair insurance company pricing practices, increasing medical costs and inefficient billing practices. These bills go a long way toward addressing each of those issues."
The Fair and Affordable No-Fault Reform package includes:
- A ban on on-driving rating factors, including credit score, gender, occupation and education level, from being used to determine auto insurance rates.
- A fee schedule set at 185 percent of Workers Compensation for all medical providers treating auto accident victims, with cost-of-living adjustments. Level 1 and 2 trauma centers would not be subject to the fee schedule.
- A $15 per hour rate schedule for family-provided attendant care, with allowable waivers to ensure fair compensation for certain patients whose disabilities and needs justify more skilled care. The bill also ensures patients who require 24/7 care will have access to it.
- The creation of fair standards and qualifications regulating physicians who conduct independent medical exams when requested by insurance companies.
- Bill language to strengthen an existing law requiring that auto insurance premiums are "appropriately reduced" for any consumer buying policies that coordinate auto and health insurance coverages.
"We are urging all Michigan lawmakers to support this bill package and move it through the legislative process as quickly as possible," Cornack said.
