Senate Passes Auto Insurance Reform with Amendments

On Thursday the full Senate reported an amended version of Senate Bill 248, legislation making sweeping changes to the state’s auto no-fault structure. The version of the bill passed out of the Senate chamber had four key provisions:

1. Establishing a new association to handle claims for catastrophic injuries;
2. Limiting attendant care payments;
3. Creating an auto insurance fraud authority; and
4. Reimbursing health care providers no more than that provider charges insurers for similar services, exempting Medicare and Medicaid rates.

During the Senate session many amendments were adopted and rejected, emotional stories presented, and spirited debate on both sides of the issue ensued. In the end, however, the Senate voted 21-17 to send a largely revised bill to the House.

The changes came in the form of five amendments sponsored by varying Senate Republicans.
1. Senator Joe Hune (R-Whitmore Lake), clarified language already in the bill regarding one's ability to seek greater reimbursement for attendant care.
2. Senator Mike Shirkey (R-Clarklake) amended the bill to ensure that members or self-insurers paying for the costs and administration of the Fraud Authority did not do so with premium revenues.
3. Senator Ken Horn (R-Frankenmuth) amended the bill to allow an injured person or his or her representative to request a medical review to determine care and treatment requirements, and if that review exceeded the limitations of reimbursement, making those payments allowable.
4. Senator Shirkey followed with another amendment subjecting the Fraud Authority to the Freedom of Information Act.
5. Senator Dave Robertson (R-Grand Blanc) removed a provision requiring injured persons receiving attendant care to pay a co-payment after the first 30 days of treatment of 20 percent up to a maximum of $200 a month.

On the other side of the aisle, 17 different amendments were offered but the Republican majority did not bite on any of them. In the end, Senate Bill 248 was passed on a 21-17 vote, with all Democrats voting no except Senator Virgil Smith (D-Detroit).

The other provision in the bill that raised some eyebrows included an appropriation of $150,000 for implementation purposes. Many opponents of the Senate Bill suggest this was added to make the bill referendum-proof (the Supreme Court has ruled that a bill containing an appropriation, no matter how small, makes it immune from referendum). The Senate Majority Leader suggested that money will go toward educating the public on the new changes.

After passage in the Senate, the bill was sent to the House Insurance Committee where a hearing has not yet been scheduled.

posted by PAA Online , Friday, April 17, 2015 12:10 PM
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