LANSING ? Michigan House Speaker Jase Bolger unveiled an auto insurance overhaul on Thursday that would provide 10 percent yearly savings in premiums for two years, a $10 million cap on catastrophic medical benefits and more transparency within the Michigan Catastrophic Claims Association.

Bolger (R-Marshall) said he has addressed all of the opposition’s complaints about the previous proposal, though he said he still expects pushback, saying opponents will still find “new excuses” to oppose the proposal.

“We listened for almost a year after the bill was reported from committee,” he said. “We added solutions; we sought to solve additional problems. That’s why we’re seeking to advance this proposal and that’s why we believe it’s important.”

A bill (HB 4612 ) stalled on the House floor last year with a $1 million cap on medical benefits and provided rate relief of $125 per vehicle for one year. Rep. Pete Lund (R-Shelby Township), sponsor of the bill, said the proposal unveiled Thursday is Bolger’s work and that it is a great step in the right direction.

Many House Republicans, especially those from Oakland County, have staunchly resisted any cap on catastrophic medical benefits, and with Democrats united against the legislation, the bill is well short of the needed 56 votes for passage.

Bolger said he listened to the opposition and the $10 million cap – 200 times higher than the next highest state, he said – if in place currently would not affect 99.9 percent of people injured. He said with efficiencies provided in the proposal, it wouldn’t affect anyone.

“We believe with (the proposed) provisions and reforms, no one will experience this cap,” he said.

And that higher cap, along with other aspects of the proposal, had at least two of those resistant Oakland County House Republicans offering initial praise of the plan although both said they needed to study it more before taking a formal position.

Rep. Hugh Crawford (R-Novi), who opposed the previous proposal, said he hasn’t looked at all of the details in Mr. Bolger’s plan, but said, “It’s certainly moving in the right direction.”

“It’s a lot better than the previous proposal,” he said.

Crawford said he wants to confirm the numbers, but the $10 million cap seems much better than the $1 million, if it does cover 99.9 percent of those catastrophically injured.

“It comes close to what we have now,” he said of the new proposal.

And Rep. Klint Kesto (R-Commerce Township) said while he needs to review all the details, “Certainly it’s a step forward toward something that may be able to be considered.” But he also added, “There’s a lot of things that we have to consider.”

Kesto said the $10 million cap shows Bolger listened to the concerns about the $1 million cap. Kesto said he could not yet support a $10 million cap, saying he wanted to study the cases that currently have crossed that threshold.

The key item, Kesto said, is finding a way to insure those who currently have no insurance.

The efficiencies Bolger said would save money in the system include guaranteeing payments of 125 percent of worker’s compensation rates if companies pay the claim within 30 days. Bolger said auto insurance companies will still pay the highest rates at 125 percent.

The proposal would guarantee a 10 percent savings on yearly premiums for two years and would create a $25 per-policy charge to eliminate the shortfall from the Health Insurance Claims Assessment, which raises money for Medicaid.

Bolger said the proposal would save residents $1.5 billion during the two years where the rate rollback is guaranteed.

A low-cost auto insurance policy also is created under the proposal for those at or below 133 percent of the poverty line. The low-cost plan would provide a $50,000 limit on care and would not cover other individuals involved in a car accident.

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