No-fault insurance up for discussion in legislature again

Michigan Capitol Building, rotunda
This file photo shows the interior of rotunda dome at the state Capitol Building in Lansing, Mich.


LANSING, Mich. (WOOD) — The legislative session is well underway in Lansing, and what would it be without the discussion of no-fault auto insurance reform?

With the exception of the state budget, one of the single most frequent topics we hear about when it comes to the legislature is no-fault insurance.

Michigan has some of the most expensive auto insurance rates in the country. The state also has the most generous payout for catastrophic claims for injuries from vehicle crashes in all 50 states.

The question is how to contain costs and maintain coverage options.

No plan has been introduced to make changes to the system in this session — yet.

Tuesday, the Coalition Protecting Auto No-Fault laid out some ideas they think could reduce costs.

Among those ideas, the group of providers and advocates for people with long-care medical needs from vehicle crash said they would accept some fee schedules — that is agreeing to standardized cost for crash victims.

Likewise, they would set a limit on the hourly rate for family provided attendant care.

Both positions the group has been opposed to in the past and that they say would save money.

In return, they want insurance companies to quit using credit scores to set insurance rates and get approval before raising rates.

And finally, the group wants transparency for the Michigan Catastrophic Claims Association.

CPAN wants the MCCA, a $20 billion fund, to be made public.  They want the mechanism for setting rates for the fund out in the open. They want to know liabilities and all the rest.

In the end, this is the same argument we have heard for years. It is in place where many of the arguments about no-fault reform have begun — and ended.

“We welcome CPAN to this important effort to reform Michigan’s broken auto no-fault system by reining in rising medical costs and bringing much-needed relief to Michigan consumers,” Insurance Alliance of Michigan responded in a statement.

Despite Tuesday’s developments, finding a solution that both the interest groups, legislators, the governor and costumers can all be comfortable with has been elusive in the past.