no fault auto insurance

Changes in store for no-fault insurance coverage?

Rick Pluta — Fri, 24 May 2013 19:10:52 +0000

The Michigan Supreme Court has set some new limits on expenses that can be claimed under auto no-fault insurance coverage by people injured in car crashes.

Kenneth Admire used handicapped-accessible vans since a 1987 auto accident. Three times before, his insurance company paid the entire cost of the modified vehicles.

This last time, though, the company said it would pay for the modifications, but Admire has to buy the van.

In this morning’s news: Democratic insurance reform, tax increase in Flint, state officer salaries

Michigan Radio Newsroom — Tue, 21 May 2013 11:20:01 +0000

Detroit Democrats propose auto insurance reform

Democratic state lawmakers from Detroit are proposing their own strategy to overhaul auto insurance in Michigan.

“The Democrats oppose Governor Snyder’s plan to cap insurance payouts for catastrophic injuries sustained in car accidents...Detroit caucus members say they’ll propose other measures, like requiring insurance companies to justify rate increases,” Michigan Radio’s Sarah Cwiek reports.

Flint’s EM recommends income tax increase

Flint’s emergency manager says his budget plan for the next year is balanced, but he warns that without new tax revenue sources, the city will again fall into debt.

“[Emergency Manager Ed] Kurtz says the loss of grant funding and declining property tax revenues will leave the city millions of dollars in the hole each year through 2018. Kurtz says Flint needs to raise its city income tax rate. Otherwise, Kurtz says Flint will face another round of budget cuts, including to police and fire,” according to Michigan Radio’s Steve Carmody.

Salaries for state officials expected to stay the same

“A state salary commission is expected to recommend no salary hikes for the governor or legislators. Governor Rick Snyder and legislative leaders sent word they’re not seeking bigger paychecks. There could be a battle over judges’ salaries, though, when the State Officers Compensation Commission meets today. Some judges have asked for a bump after a 10-year salary freeze,” Rick Pluta reports.

Detroit state lawmakers suggest alternative auto insurance changes

Sarah Cwiek — Mon, 20 May 2013 22:34:10 +0000

State lawmakers from Detroit say they will put forth their own package of bills to overhaul m auto insurance in Michigan.

The Democrats oppose Governor Snyder’s plan to cap insurance payouts for catastrophic car accident injuries at $1 million.

Snyder and some Republicans say Michigan’s unique “no-fault insurance” policy bumps up Michiganders’ auto insurance premiums. They say their proposal will bring those rates down by $125 per vehicle for at least one year, with possible future savings.

Could changes to auto Personal Injury Protection cost more than they save?

Lester Graham — Mon, 13 May 2013 11:00:00 +0000

Some members of the legislature are once again proposing changes to no-fault auto insurance in Michigan. They say it will save auto owners money. Opponents say the plan is good for insurance companies, but not for accident victims.

Everybody seems to agree auto insurance in Michigan costs too much.

Governor Rick Snyder and the chairs of the Senate and House insurance committees explained the latest plan to reduce the cost.

“In this legislation it would specify that premium costs would come down by $125 per vehicle in the first year and then hopefully because of competition and other things could even see that increase in later years,” Governor Snyder said.

That one-year guarantee of savings would come because of a reduction in the Personal Injury Protection part of auto insurance.

Oakland Co. executive compares House speaker to Hitler

Rick Pluta — Fri, 03 May 2013 20:26:39 +0000

One of Michigan’s most well-known Republicans has some harsh words for the state House GOP leader.

Oakland County Executive L. Brooks Patterson appeared today on the Michigan Public Television show “Off the Record.” Patterson said state House Speaker Jase Bolger has abused his power, and compared him to the leader of Nazi Germany.

State House panel set to move forward no-fault overhaul

Jake Neher — Fri, 03 May 2013 14:19:45 +0000

A proposed overhaul of Michigan’s no-fault auto insurance system has cleared its first legislative hurdle. A state House panel passed the bill on a party-line vote, with Democrats all voting "no."

Right now, people who are severely injured in an auto accident can get unlimited lifetime medical benefits.

The legislation would cap those benefits at a million dollars.

Many people who testified against the bill said people who are already injured would lose benefits they were promised.

In this morning's news: Auto insurance, wolf hunting, insurance for live-in partners

Emily Fox — Fri, 03 May 2013 11:01:39 +0000

No-fault overhaul moves forward

"A state House panel has voted on a bill to overhaul Michigan’s auto no-fault system. Right now, people who are severely injured in an auto accident can get unlimited lifetime medical benefits. The legislation would cap those benefits at $1 million," Jake Neher reports.

House adopts wolf hunting bill

"The state House has approved a measure that would allow an Upper Peninsula wolf hunt to go ahead regardless of a referendum on the question," Rick Pluta reports.

Health insurance for live-in partners stays

"A decision to provide health insurance to same-sex domestic partners of Michigan state government employees is intact. In an order released Thursday, the state Supreme Court unanimously declined to hear an appeal filed by Republican Attorney General Bill Schuette. The state health insurance plan covers non-family members who've lived continuously with state workers for at least a year," the Associated Press reports.

L. Brooks Patterson speaks out against changing Michigan's no-fault auto insurance

Jennifer White and Mercedes Mejia — Tue, 30 Apr 2013 21:39:20 +0000

A proposed reform to Michigan’s no-fault auto insurance is circulating in the Legislature.

Among other things, it would cap benefits for people who suffer severe injuries in auto accidents at $1 million.

Oakland County Executive L. Brooks Patterson has come out as a strong opponent to this legislation.

Patterson is still recovering from a serious auto accident he had last summer, and his driver, James Cram of Owosso, was paralyzed from the neck down.

In this interview with Jennifer White, Patterson talks about his opposition to the proposed legislation and his recovery.

You can listen to the full interview above.

Patterson wanted to be clear that he and his driver were working at the time of their accident.

Their medical bills are covered by worker's compensation, so Patterson says his opposition to changes to Michigan's no-fault insurance laws are not for his own benefit.

"Did the accident make me more aware and more sensitized to the plight of people who suffer from catastrophic injuries? Absolutely," he said.

Lawmakers introduce controversial no-fault changes

Jake Neher — Wed, 24 Apr 2013 17:33:23 +0000

State lawmakers will start debating controversial changes to Michigan’s no-fault auto insurance system this week. State House Insurance Committee Chair Pete Lund introduced the legislation on Tuesday.

He says he expects to hold several committee hearings on the issue to give lawmakers time to understand and discuss it.

“I don’t know if in their time in Lansing they’re ever going to have an issue that’s quite as complicated as this. And there’s so many different pieces involved that it’s really going to take time for people to sit down, look it over, and figure it out.”

Commentary: What price reform?

Jack Lessenberry — Wed, 24 Apr 2013 12:51:46 +0000

Last week, Governor Snyder announced plans to drastically limit benefits for those terribly injured in catastrophic auto accidents. And, as expected, legislation to do that was introduced yesterday.

Acting on behalf of the governor, State Representative Pete Lund of Shelby Township introduced two bills that would radically change how much care the badly maimed can get.

Currently, those benefits are administered and paid by an agency called the Michigan Catastrophic Claims Association, usually called MCCA. That would be scrapped in favor of a new Michigan Catastrophic Care Corporation, which would cap medical coverage at $1 million. Once a severely injured person’s care hit that limit, they would be out of luck.

In this morning's news: welfare drug tests, student achievement lags, ending lifetime coverage

Michigan Radio Newsroom — Thu, 18 Apr 2013 11:49:13 +0000

Drug tests for welfare recipients

A bill which would require drug tests for welfare recipients has moved forward in the Michigan legislature.

"A state House panel yesterday sent the legislation to the full chamber. Under the bill, the state would have to have reasonable suspicion before requiring a test. Cash assistance benefits could be terminated for people who test positive," Jake Neher reports.

Student performance in Michigan falls behind

"A new report from The Education Trust – Midwest says Michigan improved some aspects of student performance, but most other states improved even more between 2003 to 2011. The report says one reason Michigan fell behind is that the state’s strategy for improvement relied primarily on the expansion of charter and virtual schools," Michigan Radio's Dustin Dwyer reports.

Ending unlimited coverage for auto accidents

Governor Rick Snyder and GOP lawmakers are unveiling a proposal today to end unlimited lifetime coverage for medical expenses tied to auto accidents.

"The insurance lobby and other critics say Michigan's unique requirement for unlimited medical coverage is too expensive. Hospitals and others say it should stay intact," according to the Associated Press.

What's behind the high costs of Michigan auto insurance rates?

Stateside Staff — Tue, 12 Mar 2013 20:44:07 +0000

Depending on where you live in the state, your auto insurance rates could be outrageously high.

During the last session of the Michigan Legislature, there was an attempt to change the state’s auto no-fault insurance with claims that it would lower rates.

This is something the auto insurance agencies keep lobbying for, and Governor Rick Snyder said in his State of the State address we need to keep costs down.

But there’s little evidence that your insurance rates would go down that much, or at all, by these limits.

That’s because the real reason auto insurance is so high in some areas is theft, fraud, and uninsured motorists.

The part of no-fault that guarantees someone severely hurt will get the reasonable care they need is just a fraction of the cost, and some would argue the best bargain in the nation.

Joining me now is a lawyer who, we should point out, fights the insurance companies over claims on a regular basis.

Steven Gursten is with the law firm Michigan Auto Law.

Most of us find auto insurance coverage a little confusing at best, so we started off by explaining what catastrophic coverage is, and what the Michigan Catastrophic Claims Association is.

Listen to the full interview above.

This morning's news: Gun sales, 'no-fault' insurance changes, and snowmobile event canceled

Mark Brush — Tue, 05 Feb 2013 14:16:46 +0000

Political winds flame gun and ammo sales in Michigan

President Obama called on Congress and the American public to support new gun control plans yesterday in Minneapolis. While public support for some kinds of gun control measures is up, others continue to stock up fearing coming gun restrictions.

MLive reports gun and ammunition sales are surging as gun control political winds blow:

In December, the FBI ran 59,445 background checks for guns sales in Michigan, the highest monthly total in the state since the database started in 1998. The second highest monthly total was October 2001 when the FBI ran 46,270 background checks.

Michigan leaders want changes to state's no-fault insurance

If you're seriously injured in an automobile accident in Michigan, the current insurance laws in the state set you up with lifetime medical and rehabilitation coverage for your injuries. But state lawmakers want that changed.

This morning, the Detroit News profiles Sam Howell. He's benefiting from the state's current insurance laws. The News points out why Gov. Snyder and other lawmakers think changes to the current system are necessary:

Snyder says the reforms are necessary to rein in no-fault auto insurance rates in Michigan that rank among the highest in the country — particularly in Detroit — and tackle a $2 billion unfunded liability in the state's catastrophic auto accident fund the insurance industry says is unsustainable without severe cost controls.

As Michigan Radio's Lester Graham has reported, many things influence overall insurance rates in the state, and some argue if these benefits are capped, taxpayers will step in to foot the bill:

Opponents also say capping injury benefits will force the most severely injured accident victims to turn to Medicaid and welfare once they reach the insurance cap and exhaust all their family resources. They estimate it will shift $30 million a year to taxpayers.

Snowmobile event in upper Michigan canceled in wake of Caleb Moore's death

Michigan's Turtle Creek Casino and Hotel near Traverse City was planning to hold a snowmobile freestyle event this Friday and Saturday (Feb. 8 and 9), but the group overseeing the event has canceled in the wake of the tragic death of snowmobile freestyler Caleb Moore.

Body that manages state’s catastrophic claims fund fighting against court ruling

Jake Neher — Wed, 23 Jan 2013 17:26:25 +0000

Lawmakers are getting ready to consider changes to the state’s no-fault auto insurance law.

At the same time a court battle over a fund that reimburses auto insurance companies for large claims continues.

When you file a personal injury claim in Michigan of more than a half-million dollars, your auto insurance company gets reimbursed by a state-created fund. It’s basically an insurance policy for insurers.

The fund that pays those reimbursements is facing a lawsuit that says it should provide more information about how it comes up with an annual fee that ultimately gets passed on to drivers. It’s appealing a circuit court decision saying that information is subject to public information requests.

Pete Kuhnmuench is with the Insurance Institute of Michigan, which supports the appeal.

“Literally 90 percent of what was required to be disclosed under the judge’s recent ruling is already out there for public consumption,” Kuhnmuench said.

Plaintiffs in the case say lawmakers need a complete picture as they weigh proposals to change the state’s no-fault law.

Judge rules mandatory insurance calculations to be public

Lester Graham — Wed, 02 Jan 2013 21:02:09 +0000

A judge has ruled the organization which sets the mandatory fee for no-fault auto insurance must disclose how it calculates the fee.

Michigan Supreme Court opens session with no-fault, medical marijuana cases

Rick Pluta — Mon, 08 Oct 2012 16:21:00 +0000

The Michigan Supreme Court formally opens its 2012 session this week.

Its first cases deal with no-fault insurance benefits, Michigan’s open meetings law, and medical marijuana.

The first arguments of the court’s session will be on the case of a woman who wants her auto no-fault coverage to pay for her treatments for depression and post-traumatic stress disorder.

She was diagnosed after witnessing her son’s death in a motorcycle accident. She was following him in her car when he was struck by another vehicle.

Lawsuit seeks Michigan auto injury claims data

Rick Pluta — Mon, 23 Jan 2012 21:58:26 +0000

CORRECTION: An earlier version of this story reported that the MCCA fee is $145 per driver. It is, in fact, $145 per insured vehicle. If you own, and insure, two cars, the fee would be $290.

A coalition of trial lawyers, unions and victim advocates is going to court seeking data on accidents and insurance payments.

Lawmakers who want to change Michigan’s no-fault insurance system say the current system is unsustainable. But fans of no-fault say the data will show the system is financially sound.

The problem is the information is held by an industry group that does not want to release the information. The group sets an annual assessment on drivers to pay the health care bills of the most-critically injured people.

“This knowledge is being hidden from us, from the Legislature, from the public," said George Sinas, a personal injury attorney who opposes plans to change no-fault. "We are deeply committed in this lawsuit in seeking an end, in seeking a lifting if you will of this shroud of secrecy.”

Sinas says the Michigan Catastrophic Claims Association should be forced to release the information because it was created by the Legislature, and because every driver has to pay the fee.

But the insurance industry disagrees.

"The MCCA is not a public body," said Pete Kuhnmuench, president if the Insurance Institute of Michigan, an industry association. "It’s not even a policymaking body. It’s a payment mechanism. It collects assessments from insurance companies and then it reimburses insurance companies for expenses they have relative to a private contract.”

Kuhnmuench says state insurance regulators make sure the MCCA assessment is fair and that consumers are protected. The MCCA assessment on every insured vehicle in Michigan is $145 this year.

Seven things to know about changes to Michigan's mandatory auto insurance

Lester Graham — Mon, 16 Jan 2012 18:05:18 +0000

The Michigan House of Representatives is expected to bring HB 4936 to the floor for a vote soon.

That legislation would significantly change Michigan’s auto no-fault Personal Injury Protection (PIP) coverage.

Here is a quick overview of what we have now, the proposed changes, and the potential consequences of those changes.

1. What we have now

“Without no-fault insurance…I’d lose everything I own”

Lindsey Smith — Fri, 02 Dec 2011 03:14:32 +0000

A coalition of rehabilitation centers and people injured in car accidents is trying to stop proposed changes to Michigan’s no-fault auto insurance benefits.

The Coalition Protecting Auto No-Fault is hosting town hall meetings across the state to educate people about the proposed changes. They’re also inviting people impacted by a major car accident to share their stories.

Protecting yourself after changes to no-fault insurance

Lester Graham — Tue, 29 Nov 2011 12:00:00 +0000

Michigan legislators are considering changing insurance benefits for people badly injured in auto accidents. The sponsors of the legislation say it will lower the price of auto insurance. Some analysts say it will mean people who are severely hurt won’t get the care they need and argue in the end won’t save much money at all.