Auto No Fault Insurance Reform Passes the House Insurance Committee

The House Insurance Committee passed auto no fault insurance reform legislation that included a more specific fee schedule and a $100 rate reduction per vehicle. After seven hours of committee testimony, members put their stamp of approval on the measure by a vote of 9-6. Senate Bills 248 and 249 now make their way to the full House where all 110 members have an opportunity to weigh in on this important legislative package.

A few significant changes made in the House Committee included a specific fee schedule with a reimbursement rate at 150 percent of the Medicare rate and a requirement for auto insurers to reduce rates by $100 per vehicle in the first two years.

Opponents to the changes, including the Coalition Protecting Auto No-Fault, stated, “the fee schedule in this bill is completely unworkable from a health care provider standpoint and the reimbursement structure of SB 248 will cost hospitals tens of millions of dollars each.”

An amendment was offered to remove the $150,000 appropriation in the bill, but it failed. Opponents have charged the appropriation is there only to make the law referendum-proof and if revenue is needed for this reform it could be added to the budget, which is currently being worked on.

After the House changes and vote, Senate Majority Leader Arlan Meekhof (R-West Olive) and Sen. Joe Hune (R-Whitmore Lake), sponsor of the bill, said they will discuss some of the changes made by the House committee. Differences between the House and Senate versions such as, the specific fee schedule and the rate rollback will require further negotiations between the chambers to move these bills forward.

posted by PAA Online , Friday, April 24, 2015 2:42 PM
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