No-Fault Reform: SB 248

Coins and Car
On April 16, 2015, the Michigan State Senate passed SB 248 with bi-partisan support, which reforms Michigan’s no-fault insurance laws without reducing coverage for those hurt in auto accidents.

SB 248:

  1. Does not reduce current no-fault benefits and coverage. The legislation protects the benefits and medical coverage that every driver receives under our current no-fault system
  • Every insured driver will have the same unlimited medical coverage they have today.
  1. Establishes a fraud bureau to fight auto insurance fraud. The new bureau will be paid for by the insurance industry and could save drivers on their insurance premiums.
  • Michigan is only one of seven states without a fraud bureau to investigate insurance fraud.
  1. Reorganized the Michigan Catastrophic Claims Association (MCCA) to be made more transparent and open to the public. The new MCCC will be a pay as you go system that will be run by a public board.
  • The new MCCA will cover all medical costs over $545,000 per patient.
  • Claims will be paid directly by the MCCA to the medical providers, eliminating the need to have insurance companies involved as the “middleman.”
  1. Sets reasonable rules and costs for family and professional attendant care that protects those patients in need of 24-hour care.
  • Family members will be allowed to provide 24-hour care, but will be limited to $15 per hour for a total of 24 hours in a day.
  • Any patient requiring 24-hour professional care from a non-family members will be able to receive the care needed.
  1. Sets up the framework for a fee schedule that will allow medical providers to only bill auto accident patients the same rate they collect from other insurance carriers.
  • A strict fee schedule is needed to stop medical providers from charging auto insurance patients by as much as 500 percent more than they charge patients hurt on the job for the exact same procedure.

The reforms will keep Michigan’s no-fault system as the most generous system in the county, but provide cost savings that will make it more affordable for every driver in Michigan.