The debate continues to rage on over reforming Michigan’s auto insurance no-fault system. Michigan lawmakers and insurance industry leaders are meeting in Lansing to hash out the details of a new bill that is yet to be finished, released or able to be analyzed.
Here is a list of some of the potential Michigan auto insurance no-fault reforms:
PIP cap: Personal Injury (PIP) benefit reduced from unlimited lifetime to $1 million.
Excess liability coverage: The Michigan Catastrophic Claims Corporation (MCCC) would take over the administration of actual claims up to the $1 million cap and incremental risk under a newly-formed MCCC instead of the current MCCA. Consumers would pay for the state-run group through charges from their Michigan auto insurance policy.
Medical cost containment: Reimbursements paid to family members under Attendant care reimbursement related to catastrophic auto accident patients would be limited to only eight hours per day. The fees paid to licensed medical providers would be changed to reflect competitive fees.
New annual vehicle fees: Michigan vehicles would be charged $20-$30 per vehicle annually to help pay for Medicaid.
Rate reductions: Mandatory insurance rate reductions of $150 per vehicle are still being considered. At this point, nothing has been set in stone.
Michigan drivers may not have to wait long to hear about the proposed changes. Gov. Rick Snyder reportedly has made auto no-fault reform a priority.
