Brain injury rehabilitation specialists who provide life-saving care react to news of auto insurers reaping the gains of record-setting profits
Brain injury rehabilitation specialists who provide life-saving care — many of whom will not be able to afford staying in business — react to news of auto insurers reaping the gains of record-setting profits
MBIPC president notes that analysis by insurance expert demonstrates an industry greedily pursuing profits at the expense of critical medical care for its consumers
BRIGHTON, Mich.—(May 26, 2021)— With today’s news that Michigan’s auto insurers are hauling in record windfalls, Michigan Brain Injury Provider Council (MBIPC) President Tom Judd called on the auto insurance industry to immediately cease and desist from its aggressive push for more profits at the expense of critical medical care for its own customers.
Judd spoke out in reaction to news that, based on an analysis by an insurance expert, the top insurers in Michigan earned historic, record-setting profits through 2020 — yet continue to lobby aggressively against two bills that would help their own consumers receive critical medical care in the event of an auto accident.
“Time is running out for both the auto insurance industry and Michigan’s lawmakers to be on the right side of history,” Judd said. “Over the past several months, dozens of news stories have spotlighted the impact that inaction on House Bill 4486 and Senate Bill 314 will have on the lives of thousands of catastrophically injured citizens throughout the state. With today’s news, it is now well-documented that the insurance industry has continued to rake in enormous profits – even during the worst of times — yet greedily seeks more at the expense of life-saving, quality care for their consumers who pay premiums in Michigan.”
On Wednesday, Douglas Heller, an independent consultant and nationally recognized insurance expert, announced during a news conference that five of Michigan’s top auto insurers scored enormous profits in 2020, at the height of the pandemic while fewer cars were on the road and fewer claims were being made.
Progressive saw 43% increase in profits nationwide, netting $5.7 billion income
State Farm reported a national auto insurance “underwriting gain” of $1.7 billion—this profit is 50% higher than the next best underwriting results from the last 10 years
Allstate more than doubled its auto insurance “underwriting income” to $3.4 billion
Citizens Insurance parent company Hanover Insurance Group reported a 47% increase in 2020 personal lines insurance income before interest and taxes
Auto-Owners achieved a record ninth consecutive year with an underwriting profit, with total premium growing more than $300 million.
Heller made public his findings during a news conference held by State Rep. Donna Lasinski, State Rep. Brenda Carter, and State Rep. Julie Rogers in support of House Bill 4486. Introduced by State Rep. Doug Wozniak, HB 4486 offers a narrow fix to the fee schedule. The bills would impose a reasonable fee schedule, which would reduce cost in the system and avoid gutting the amount that caregivers receive for doing complex, high-intensity work. The legislation would do so without changing any other aspect of auto insurance reform whatsoever. A similar bill, SB 314, was introduced by State Sen. Curtis Hertel, Jr., in the Senate.
“It’s shameful that the auto insurance industry paints ethical providers that provide life-saving care as greedy when they enjoyed record profits during a global pandemic,” Judd said. “It is time for legislators to choose—do they prioritize the profits of the insurance industry or the critical care for some of their most vulnerable constituents?”
The ripple effect of this unintended consequence of the 2019 auto reform package has consequences far beyond the post-acute care industry, and the following organizations support MBIPC in its fight to pass HB 4468 and SB 314: The Christopher & Dana Reeve Foundation, the Michigan Assisted Living Association, Disability Rights Michigan, the Brain Injury Association of America, Disability Network/Michigan, Michigan Occupational Therapy Association, Michigan League for Public Policy, Michigan Developmental Disabilities Council, and the League of Michigan Bicyclists.