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Steve Gursten interviewed as expert on No Fault plan caps

Michigan Auto Law lawyer Steven Gursten says opting for $250K car crash injury coverage cap under new No Fault plan would be “enormous” cost-shift to Medicaid

Michigan Auto Law attorney Steven Gursten was interviewed in Crain’s Detroit Business in a recent analysis of House Bill 5013, also known as the Driver’s Choice Insurance Reform plan, which was introduced September 26, 2017, in the Michigan Legislature.

Gursten, who regularly analyzes and blogs about issues related to No Fault auto insurance reform, noted how Michigan drivers who opted for a lower level of coverage for personal injury protection would not actually be getting the $250,000 limit as promised.

“There is no such thing as a $250,000 lower cap — it’s really just $25,000,” said Gursten, in the October 1, 2017, Crain’s article “Battle lines drawn in latest try at auto insurance reform.”

Gursten added that for Detroit Mayor Mike Duggan — who teamed with Michigan House Speaker Tom Leonard (R-DeWitt) on HB 5013 in an effort to deliver car insurance premium relief for Michigan drivers — “that is going to kill his constituents.”

Gursten noted to Crain’s that HB 5013 would result in an “enormous” cost-shift to employer-provided health insurance plans and Medicaid.

“If you don’t have great health insurance, which many people don’t, then you’re going to be blowing through personal savings, declaring personal bankruptcy and ending up on Medicaid,” Gursten explained.

In a September 27, 2017, Michigan Auto Law blog post analyzing what the $250,000 lower cap actually covers, Gursten noted that $225,000 of it “can ‘only’ be used to pay for ‘emergency’ medical expenses, i.e., the medical bills association with a victim’s ER visit after a car accident.”

The House Insurance Committee was scheduled to being hearings October 3, 2017, on the bipartisan HB 5013.

This entry was tagged: Michigan No-Fault reform
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