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House Insurance Committee drops the ball

Here are the amendments to Substitute for SB 248 that Republican lawmakers shot down yesterday

Michigan House Insurance Committee Chair Rep Tom Leonard (R-Clinton County)

Michigan House Insurance Committee Chair Rep Tom Leonard (R-Clinton County)

As I wrote yesterday, the House Insurance Committee fumbled.  They could have passed meaningful No Fault insurance reform that could have resulted in significant consumer savings on auto insurance, and greater transparency and fairness.

Instead, in exchange for $100 one-time, they gave the insurance companies exactly what they have been asking for. You can read more about the terrible deal that Substitute for SB 248 is here.

Here are the Amendments that were proposed yesterday that would have greatly improved, and maybe even have saved No Fault in this state, putting it on the track for long-term sustainability and ensuring greater fairness.

However, Republican representatives on the committee shot all of these proposed Amendments down without hesitation:

  • Rep. Paul Clemente (D-Wayne County) proposed amendment: Full and final audit of old Michigan Catastrophic Claims Association to determine if there’s a surplus. And assuming audit is done by independent auditor and actuary, that the old MCCA become the first funder of any deficits in the new MCCA – 6 yays, 11 nays = NO.
  • Rep. Tom Cochran (D-Ingham County) proposed amendment: Remove $15 cap on family attendant care benefits – 6 yays 11, nays = NO
  • Rep. Derek Miller (D-Macomb County) proposed amendment: Make the new MCCA transparent – 7 yays, 10 nays = NO
  • Rep. Brian Banks (D-Detroit) proposed amendment: Review to determine if more than 24 hours of attendant care should be conducted by injured party’s treating physician – 6 yays, 11 nays = NO
  • Rep. Tom Cochran (D-Ingham County) proposed amendment: Strike out language toward the fee medical fee schedule – 6 yays, 11 nays = NO
  • Rep. Robert Whittenberg (D-Oakland County) proposed amendment: Remove appropriations in bill, want to leave appropriations process to that committee – 6 yays, 11 nays = NO
  • Rep. Tom Cochran (D-Ingham County) proposed amendment: Insure any changes made by bill would apply only to new cases and not affect current cases, 7 yays, 10 nays = NO
  • Rep. Brian Banks (D-Detroit) proposed amendment: Remove education level as an item in auto insurance rate setting – 6 yays, 11 nays = NO
  • Rep. Brian Banks (D-Detroit) proposed amendment: Exclude zip codes from being criteria for setting auto insurance rates, 6 yays, 11 nays = NO
  • Rep. Tom Cochran (D-Ingham County) proposed amendment: Rollback and reduce auto insurance rates by 20% – 6 yays, 11 nays = NO
  • Rep. Tom Cochran (D-Ingham County) proposed amendment: Rollback and reduce auto insurance rates by 10% – 6 yays, 11 nays – NO
  • Rep. Brian Banks (D-Detroit) proposed amendment: Rollback and reduce auto insurance rates by 30%  – 6 yays, 11 nays = NO
  • Rep. Tom Cochran (D-Ingham County) proposed amendment: Rollback and reduce auto insurance rates by 40% – 6 yays, 11 nays = NO
  • Rep. Robert Whittenberg (D-Oakland County) proposed amendment: A 20% loss ratio similar to the medical industry, with 80% of insurance premium going toward patient care and the other 20% going to administrative costs and salaries, etc. – 6 yays, 11 nays = NO
  • Rep. Tom Cochran (D-Ingham County) proposed amendment:  Expand authority of the MCCA board to include more interested parties like medical professionals and authorize board to investigate fraud – 6 yays, 11 nays = NO
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