LANSING – Michigan House Speaker Jase Bolger says he would like to see reform of the state’s no-fault auto insurance system before the end of the year and Rep. Pete Lund’s bill isn’t dead in the House.

“I think (HB 4612 ) does address several … issues, but we remain willing to work with people with differences of opinion and address concerns,” Mr. Bolger (R-Marshall) said during an interview with Gongwer News Service this week. “I don’t expect that bill as it is today to go up for a vote.”

Bolger said changes would be made to the legislation that currently has a $1 million cap on medical coverage for catastrophic injuries. The bill also would curb attendant care costs as well as what health care providers could charge insurers, and provide a $125 rollback in premium costs for the first year.

That plan has stalled on the House floor with many Republicans joining a united Democratic caucus in opposition to capping catastrophic injury benefits.

Bolger said he has been having discussions with House members and constituents. He said the state has the best auto insurance coverage in the country, but also the most costly.

“We need to reform this system,” he said. “I want to be sure if we adopt reform, that that reform means we still have the best coverage in the country, and we have more affordable coverage.”

Bolger said conversations on changing the bill surround virtually every issue including a cap on medical coverage, and what an appropriate cap would be, combating fraud, attendant care and payments from auto insurance providers to health care providers.

“The thing that bothers me the most is when I hear from hospitals … and I hear from auto insurers. And they both agree that yes, (auto insurers) pay more,” Bolger said. “But it takes so long and so many attorney bills to try and collect that money, because there’s such a fight over the amount actually due. So nobody benefits from that. The insurer doesn’t benefit, the provider doesn’t get paid as much because they have to pay to collect it, and the insurance provider has to pay to fight that. The loser in that situation are our families who pay their auto premiums.”

On Friday, House Democrats from Detroit released a statement opposing auto insurance reform bills offered in the fall that do not provide transparency, fight fraud and save motorists money.

The Detroit caucus plans to introduce a package of bills reforming the no-fault auto insurance system in the state by:

Restructuring the board of the Michigan Catastrophic Claims Association to include more than just members from the insurance industry;

Creating a Fraud, Waste and Abuse Commission;

Collecting the Michigan Catastrophic Claims Association Assessment at the Department of State branch office instead of through insurance companies;

Requiring insurance companies to justify rate increases before they are imposed on drivers;

Requiring insurance companies to spend at least 80 percent of premiums collected on clients;

Prohibiting consideration of credit history, education and occupation when calculating premiums and surcharges;

Allowing the insurance commissioner to order refunds and private parties to sue when auto insurers overcharge their policy holders; and

Prohibiting insurance companies from directing clients to collision shops owned by insurance companies to promote competition among collision shops.

“I’ve introduced bills last session and this session to make the MCCA more transparent,” said Rep. Phil Cavanagh (D-Redford Township). “That board, comprised of insurance companies, is sitting on $18 billion of our money and refuses to open their books or allow members of the public to attend their meetings. Until they are willing to show us the numbers I’m not going to just take their word that the fund is broken and unsustainable.”

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