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This morning the committee heard from the Coalition to Protect Auto No-Fault (CPAN) on its opposition to PIP choice. CPAN believes that a cap on PIP levels will not cover all reasonable medical needs and will shift costs to Medicaid. Instead, the Coalition thinks a provider fee schedule, reducing fraud in the system, and eliminating non-driving rating factors will lower rates and protect unlimited health coverages.

 

 

Click video to view today's meeting.

The committee also heard from Senator Ed McBroom (Upper Peninsula) and Senator Marshall Bullock (Detroit). The Senators are from opposite parts of the state and opposite political parties, yet both stressed how the cost of insurance negatively impacted their constituents.

Finally, the committee heard from the National Federation of Independent Business (NFIB) on the need for a medical fee schedule for no-fault. NFIB comments mirrored those made last week in committee by the Michigan Chamber of Commerce and the Insurance Alliance of Michigan. The Chamber said fee schedules can rein in costs and cited the state’s passage of workers’ compensation fee schedules in the 1980s. Meanwhile, IAM Executive Director Tricia Kinley said implementing the medical fee schedule used in workers' compensation or based on that of Medicare could lead to savings of at least 10 percent. She added these savings are just for the PIP portion of medical charges and are independent of other factors or potential legislative reforms.

On the other hand, the Michigan Health and Hospital Association does not support government-mandated fee schedules and does not believe provider payments are responsible for increasing costs. They testified that frivolous lawsuits and allowing the insurers to use “unfair rating practices” is the primary driver of high insurance rates.

 

 

Click video above to watch testimony at Insurance and Banking Committee's February 20 meeting.

Posted 10:50 AM

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