Crain's Detroit Business: At Mack and Moross, the Intersection of Policy and Penalty

Posted on October 30, 2017

In an article published Oct. 29 in Crain's Detroit Business, Reporter Chad Livengood examines territorial rate setting when it comes to auto insurance premiums in Michigan.

Livengood focuses on a 10-block area around Moross Road and Mack Avenue, which many consider a dividing line between Detroit and Grosse Pointe, between black and white, working class and elites. Within that 10-block setting, AAA of Michigan reports six different auto insurance base prices.

The article examines the practice of redlining (basing auto insurance premiums on factors such as income, education level and ZIP code among others) and observes the irony of current legislation dictating what hospitals can charge and not what insurers can charge. Livengood spoke to MHA Senior Vice President and Chief Innovation Officer Laura Appel about the criticism hospitals have faced for years about their pricing when it comes to treating auto accident victims.

"You can't lay that at the doorstep of the hospital," Appel said of terrirotial pricing. "When you come into the hospitals and if you're critically injured, the sound goes off in the hospital -- trauma team to Bay 1 -- and they all run there. They don't know which side of the street you were insured on."

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  • Crain's Detroit Business: At Mack and Moross, the Intersection of Policy and Penalty

Tags: auto no-fault, Laura Appel, redlining, territorial rate setting, HB 5013

Posted in: MHA In The News

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