On Thursday afternoon, the
House Insurance Committee reported a bill to reform Michigan's no-fault auto
insurance system. Under the provisions of House Bill 4612, medical coverage for
catastrophically injured car accident victims would be capped at $1 million
after January 1, 2014. The bill would also reduce insurance rates by $125 per
vehicle in the first year after the legislation is enacted. Limits were also placed on attendant care and
home modifications to accommodate injuries. House Bill 4612 now heads to the
full House for consideration.
On a related note, the Michigan Senate Democrats released a
statement last week expressing their opposition to the proposed changes to the
state’s auto no-fault system. The statement indicated that not one Democratic
Senator will vote in support of the reform proposal in its current form.