Gov. Whitmer Should Focus Attention on Horrors of Catastrophic Care Crisis, Not Hollow Auto Insurance “Savings”
BRIGHTON, Mich.—(Nov. 16, 2021--Instead of taking time to address the Michigan Care Crisis that is disrupting rehabilitative services for crash victims, ripping away care for catastrophically injured Michiganders, costing thousands of healthcare heroes their jobs and upending families throughout the state, Governor Gretchen Whitmer today highlighted the “savings” Michigan drivers are experiencing with their auto insurance coverage.
“The Governor, and the Republican-led Legislature, continue to tout the accomplishments of the 2019 auto no-fault law, twisting facts and figures to paint a picture of a system that is meeting the objectives set forth in their signature legislation,” said Tom Judd, president of the Michigan Brain Injury Provider Council (MBIPC). “And it seems that they are doing this in an effort to refute any claims for needed changes, including the need to address the fee cap system that has taken effect – devastating the rehabilitation and care of thousands of crash survivors throughout the state.”
The intent of the auto no-fault law passed in 2019 was to make auto insurance more affordable for all Michigan citizens. While the statistics and figures promoted by the Department of Insurance and Financial Services (DIFS) paint a picture of large-scale savings, a deeper dive shows how shallow these savings are, all while ignoring the Michigan Care Crisis. For example:
The $1 billion in savings (cited in the Governor’s statement) comes from an editorial by the Insurance Alliance of Michigan (the well-funded lobby arm of the powerful and profitable insurance industry). With a little over 7 million licensed drivers in Michigan, the average savings per driver comes to a little over $140. Does that difference make insurance more affordable for the average family?
While The Zebra reported an overall decrease in Michigan rates, it still reports Detroit as the most expensive city (over $5,000 on average) in the nation. Clearly insurance is not more affordable to Michiganders that reside in Detroit.
According to Insure.com, Michigan’s slide out of the top spot as the most expensive state is due to a “technicality.” The rates quoted in their report are not based on the lifetime coverage level (which 70% of Michigan drivers continue to select). For those that want to continue to invest in the promise of lifetime care, their insurance premiums have not become more affordable.
The average savings that takes into account bodily injury coverage are based on the new minimal thresholds. However, most informed drivers are selecting coverage well beyond those limits, to the extent they can afford them, with the knowledge that now they could be held legally liable (i.e., they can be sued) for the medical expenses of other drivers with lesser PIP coverage – a new reality facing Michigan drivers after this reform.
There have been hundreds of opportunities over the last 12 months for Michigan leaders to respond to horrifying and gut-wrenching stories of the impact of the unreasonable and irresponsible fee cap system, Judd said.
“Crash victims having to be re-hospitalized, minor children needing to provide intimate care for their injured parents, essential rehab services becoming inaccessible, and people being displaced from their homes into an institutional setting has not been enough for Governor Whitmer, Speaker Jason Wentworth, and Majority Leader Mike Shirkey to come together and move on viable options set before them,” he said. “Dozens of state and national associations and disability advocates, as well as religious leaders, have called for an end to this crisis; but, instead our leaders quickly pivot towards the mirage of more affordable auto insurance for Michigan drivers and families.”
Judd noted that Michigan drivers are overwhelmingly continuing to choose lifetime coverage with their insurance options. Thousands of drivers that are currently receiving care had no choice and paid into a system that made a promise of lifetime care. These Michiganders deserve a system that allows for reasonable coverage for the essential rehabilitative services and care they require, he said.
“It is far past the time for Governor Whitmer and the Republican-led Legislature to focus their energy on the immediate and urgent need that is only going to get worse with continual delays and passive attention,” Judd said.