Governor Creates New Anti-fraud Unit to Tackle Insurance, Financial Fraud

Posted on September 12, 2018

Michigan's Auto No-Fault SystemOn Sept. 11, Gov. Rick Snyder announced the formation of an anti-fraud unit to investigate insurance and financial fraud. The new unit, which was created through an executive order, will be housed within the state’s Department of Insurance and Financial Services (DIFS). It will work in tandem with other law enforcement agencies to share information on fraudulent activity and collaborate to prevent the occurrence of future instances of fraud within the auto insurance, health insurance and banking sectors.

 During the many years that changes to the auto no-fault system have been debated in Lansing, the MHA has consistently advocated for the need to address auto insurance fraud in the Legislature. Despite the numerous reports that addressing fraud in the auto no-fault insurance system would lower rates in Michigan, attempts to pass anti-fraud legislation have failed to date. 

“Michigan hospitals have stood firm on two major tenets when it comes to auto no-fault: protecting access to care for auto accident survivors and their families and the need to tackle fraud, abuse and overuse within the auto no-fault system,” said MHA CEO Brian Peters. “We know that Michigan drivers want lower rates when it comes to their auto insurance, and tackling fraud in the system is a key component to rate relief.”

The anti-fraud unit within DIFS is charged with the following tasks:

  • Conduct background checks on applicants for licenses and current licensees.
  • Collect and maintain claims of criminal and fraudulent activities.
  • Investigate claims of criminal and fraudulent activity in the insurance and financial services markets that, if true, would constitute a violation of applicable state or federal law.
  • Maintain records of its criminal investigations.
  • Share records of its investigations with other criminal justice agencies.
  • Review information from other criminal justice agencies to assist in the enforcement and investigation of all matters under the authority of DIFS.
  • Conduct outreach and coordination efforts with local and state law enforcement and regulatory agencies to promote investigation and prosecution of criminal and fraudulent activities.

Further details, including when the anti-fraud unit will be fully functional, are yet to be determined. The MHA will keep members apprised of additional developments as they become available. Members with questions should contact Chris Mitchell at the MHA.


  • Governor Creates New Anti-fraud Unit to Tackle Insurance, Financial Fraud

Tags: auto no-fault, auto insurance, advocacy

Posted in: Issues in Healthcare, Top Issues - Healthcare

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