Renewed Optimism after a Commitment to Fairness and Truth

Renewed Optimism after a Commitment to Fairness and Truth

In our last Diving Deeper with MBIPC, we detailed the barriers preventing the advancement of Senate Bills 530, 531 and 575 in the House of Representatives Insurance and Financial Services Committee. Since then, there have been significant developments, including a grassroots social media campaign, a productive meeting with Chair Brenda Carter, and the most insightful interview regarding the current state of auto insurance in Michigan.

MBIPC has had a close relationship with the grassroots organization We Can’t Wait since its inception. This group, started by family members of injured crash victims, has been fighting for changes to the law so that the care their loved ones had been promised was restored. Many of these families received civil justice through the ruling by the Supreme Court in the Andary case – which ruled that the fee schedule and hourly limits to family provided care could not be retroactively applied to those injured prior to June 2019, who had insurance policies at the time of their accident. Yet, that has not stopped their efforts because they know the fate of people injured in car crashes after June 2019 is in the hands of the legislature.

We Can’t Wait has shared the same frustration MBIPC members have experienced with the lack of movement since the bi-partisan package of bills came out of the Senate. Over the last several weeks, the group organized public efforts to shed light on the current status of the bills, including appearances at Insurance Committee Chair Brenda Carter’s events and a social media campaign detailed in a MIRS article and this article from Tracy Samilton of Michigan Radio.

It seems the campaign has slowed down somewhat after a meeting was held with the Coalition Protecting Auto No-Fault (CPAN) and Chair Carter on February 28. In a Gongwer article published on February 27, Chair Carter mentioned the meeting with CPAN as well as a letter she received, stating, “I want to thank them for reaching out to me – I greatly appreciate their position, and from day one, it has always been important to me to hear from all stakeholders involved in this complex issue. I also understand their plea for a remedy with auto no-fault; I genuinely do from my heart. As chair of the Insurance and Financial Services Committee – not to mention as someone who is personally passionate about this issue – I am committed to improving Michigan's auto insurance system.”

After the meeting, CPAN issued a statement appreciating Chair Carter’s “commitment to fairness and truth in solving these urgent issues that have caused unnecessary turmoil and suffering.” The statement goes on to say they look forward to “hearings on the bipartisan Senate bill package (SB 530, 531 and 575) within the next two to three weeks” and “the opportunity to provide input on any alternative solutions being contemplated by the House of Representatives.”

Furthermore, MBIPC strongly agrees with CPAN’s position: "It is essential that impacted stakeholders such as crash survivors, families and care providers have a voice in the development of any proposed solutions, and we appreciate Chair Carter’s guarantee that this will occur.” It is concerning that potential legislation is being crafted without input from the diverse and wide-ranging stakeholders that will be impacted. Individual providers working outside of state-wide associations have a limited perspective and lack the insight required for a holistic solution.

Without legislative action, the Crisis in Care in Michigan will continue, and the auto insurance system will remain a source of pain for all drivers, especially the roughly three people injured in a car crash every day who will require substantial rehabilitation and care. The overall state of auto insurance in Michigan was recently detailed by Douglas Heller, director of insurance at the Consumer Federation of America.

In this interview with CBS News Detroit, Mr. Heller details the continued high cost of auto insurance in Michigan, with particular attention to the systematic practices that keep Detroit at the top of the list of most expensive cities in the country. He also details how the benefits being purchased are not accessible because of the current reimbursement system and his observations of elected officials not standing up to the insurance lobby in Lansing. This is the most insightful and articulated overview of the disastrous policies that have been ineffective in lowering insurance rates while cutting benefits for consumers who choose to pay for a certain level of care. All legislators and consumers should take the time to listen to Mr. Heller.

While there is reason to be optimistic that action will happen soon in the House of Representatives, MBIPC, along with our coalition partners, will continue to counter the misinformation that continues to flow from the opponents of change and will keep our elected officials accountable for continued inaction.

Sincerely,

Tom Judd

Executive Director