MHA Testifies on Auto No-fault in Insurance and Banking Committee
Posted on February 22, 2019
The Senate Committee on Insurance and Banking heard testimony Feb. 20 from Chris Mitchell, executive vice president, Advocacy & Public Affairs, MHA, and Laura Appel, senior vice president and chief innovation officer, MHA, as part of its renewed effort to reform Michigan’s auto no-fault insurance law. Sen. Lana Theis (R-Brighton), chair of the committee, specifically invited the MHA to discuss its viewpoint on provider fee schedules when it comes to the medical care of those seriously injured in auto accidents.
In its testimony, the MHA committed to working with legislators on ways to improve the affordability and sustainability of auto no-fault. However, the association reiterated its concerns with additional government-mandated fee schedules for healthcare providers and continued to question whether they would ultimately lead to meaningful, long-term auto insurance savings for Michigan drivers. The MHA pointed out that, while auto insurance rates can vary greatly across Michigan depending on things like an individual’s credit score or ZIP code, healthcare rates across the state are relatively stable and don’t experience the wide regional fluctuations seen with auto insurance. In addition, the MHA said that provider fee schedules do not address the criminal activity or fraud that is currently driving up costs for auto no-fault coverage. As a result, committee members were urged to identify what causes the rising auto insurance premiums and seek to fix those issues.
In closing, the MHA highlighted the many reform proposals that the association has supported in previous years to reduce auto insurance rates, illustrating its willingness to work with legislators on reforms that will deliver savings to drivers without sacrificing care for those seriously injured in auto accidents. Members with questions should contact Adam Carlson at the MHA.
Posted in: Issues in Healthcare, Member News