Michigan No-Fault Reforms

Erin Collins
State Affairs Manager
National Association of Mutual Insurance Companies

Re: Michigan No-Fault Reforms

“NAMIC is supportive of Representative Pete Lund’s HB 4612, as it is a step in the right direction toward rescuing Michigan’s failing no-fault system. Currently, no-fault patients are charged up to 400 percent more for tests and procedures than patients in other systems like workers’ compensation. Forty-two states use some sort of medical fee schedule in their workers’ compensation system, and Michigan needs to adopt that practice in the no-fault system in order to keep pace and control billing practices.

“Michigan’s no-fault system includes a mandatory lifetime medical benefit, giving consumers no choice in insurance products and forcing them to purchase the highest medical benefit in the country. In an environment of uncontrolled costs and no product choice, this situation creates an untenable no-fault system long-term. The reforms still ensure Michigan drivers have the highest benefit in the country, but the bill offers solutions to a system that just can’t sustain itself as is. At $1 million in medical benefits, Michigan consumers would still have 20 times higher mandated medical benefits than any other state.

“NAMIC feels this proposed solution may provide relief to consumers while providing stability to the system. We are grateful to the governor and the bill sponsors for their vision in offering reform to the no-fault system in Michigan.”