The National Association of Mutual Insurance Companies (NAMIC) submitted written testimony today to the Michigan House Insurance Committee supporting HB 4936 that would reform the state’s no-fault auto insurance system.
In her comments, Erin Collins, NAMIC’s state affairs manager for the Mid-Atlantic, which includes Michigan, stated that with passage of the bill, “Michigan can bring its system some reasonable reforms that will offer the consumer greater flexibility and choice in their coverage while still offering them the protection that they need. ... The current system with its uncontrolled medical costs and mandated benefit that doesn’t allow consumer choice will simply put Michigan behind for business growth and continue to drive costs up for both consumers and insurers.”
Michigan’s no-fault system currently allows for unlimited lifetime medical benefits, which is the largest mandated benefit in the country. “The cost of that system to both consumers and insurers is untenable in the long term,” Collins wrote. “Components of the bill like a medical fee schedule will help control costs and bring fairness to the system, while choice of coverage limits will give consumers some flexibility and assessment of their own insurance needs.”
Contact: Lisa Floreancig
Director of Communications | State & Policy Affairs