no-fault state House Dems Announce Caucus Stance Against Auto No-Fault

LANSING — House Democratic Leader Tim Greimel (D-Auburn Hills), Democratic vice chairwoman of the House Insurance Committee Rep. Kate Segal (D-Battle Creek) and other members of the House Democratic Caucus announced today that the entire caucus vehemently opposes House Bill 4612, legislation that cuts the amount of care available to those catastrophically injured in auto accidents and locks in an insurance premium rate cut for only one year.
"This is a bill that every member of our caucus agrees would hurt the residents we represent," said Greimel. "It is clear to each of our members that this is another example of Gov. Rick Snyder and some legislative Republicans choosing big corporations over Michigan residents, and this time insurance companies win over the catastrophically injured. As Democrats, we put people before profits, a concept the Republican majority cannot fathom."
Under the bill, there would be a $1 million cap placed on personal protection insurance (PIP) coverage for policies issued or renewed after December 31, 2013. There would also be new limits on rehabilitative care and new co-pay costs on those receiving attendant care.
"As the Democratic vice chairwoman of the House Insurance Committee, I have had the opportunity to hear testimony from doctors, insurance providers and numerous Michigan residents about the ways in which this bill would harm the people of our state," said Segal. "Those who are injured in catastrophic auto accidents deserve every bit of care currently available to them; to limit the amount and types of benefits to which they are entitled is cruel. This bill guts the benefits and opportunities our current system provides to accident victims, thereby completely undermining future victims' recovery before it even starts."
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."
Additionally, this week the House Detroit Caucus unanimously voted to oppose the legislation as well.

no-fault state House Dems Announce Caucus Stance Against Auto No-Fault
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