House panel OKs changes to Mich.'s car insurance

A Michigan legislative panel has approved a bill that would end unlimited lifetime medical care for people seriously injured in car crashes.
AP Wire
May 3, 2013


Premiums would drop at least $125 in the first year under the measure being pushed by Republican Gov. Rick Snyder and the Legislature's GOP majority. All motorists would get $1 million in coverage.

The bill approved Thursday by a House committee is different from one that stalled in 2011. But it's still going to run into opposition in the GOP-led House because not every Republican is on board and Democrats fiercely oppose the plan.

Michigan is the only state that offers unlimited medical benefits for catastrophic auto injuries and rehabilitation. The assessment costs motorists $175 per car per year and is rising to $186 this summer.



That's stupid I was in a very bad car accident in 1992 I've had at least 20 surgerys and they say many more to go . I will end up with walker and wheel chair in the end ,they stopped counting the broken bones at 36 just in my legs and they want to stop my medical that sucks , my health ins won't pay who will ??Just asking my accident was on Filmore and 96 were lucky we weren't killed!!


I was curious about the statement that not all Republicans and none of the Democrats were on board with this proposal. On the face of it, it sounds like a good idea. Maybe not....

On top of the benefits cap, the bill would also phase out the Michigan Catastrophic Claims Association (MCCA) and replace it with the Michigan Catastrophic Claims Corporation (MCCC), another private entity. The MCCA would continue to pay its current claims until it pays its final liability. It would remain shielded from making any new disclosures about its use of the money collected from Michigan citizens.

Under the bill, motorists would still pay a yearly fee set by and paid to the MCCC, plus an additional $25 that would go to a Medicaid fund. Although certain disclosures are required, as a private entity, the new MCCC would not be subject to the Freedom of Information Act (FOIA).

“Republicans are trying to fool Michigan residents by claiming this bill is necessary to reduce the cost of auto insurance. Unfortunately for them, we know how to read,” said Rep. Thomas Stallworth (D-Detroit), chairman of the House Detroit Caucus. “As written, HB 4612 only promises an annual rate reduction of $125 for the first year. Following that year, insurance agencies can raise the rates at their discretion. This reform does not benefit Michiganders, it was written to increase profits in the insurance sector.”


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