LANSING, Mich. — Sen. Dale Zorn on Tuesday voted to support Senate legislation designed to reform auto insurance in Michigan.
“The high cost of auto insurance affects everyone, and we need to make smart reforms that reduce costs without reducing care,” said Zorn, R-Ida. “The Senate plan offers us the chance to provide real car insurance rate relief for Michigan drivers, reduce the number of uninsured drivers, and ensure drivers receive emergency medical care if they are in an accident.”
Senate Bill 1 would reign in out-of-control medical costs, cut fraud and conflicts of interest in the auto insurance system, and is expected to reduce the recently announced $220 annual Michigan Catastrophic Claims Association (MCCA) fee by 80%.
People already receiving care through the MCCA will continue to get lifetime care under their current unlimited benefit policy as promised.
“Currently, auto insurers in Michigan pay some hospitals and health care providers 400% more than what health insurers pay, and these inflated costs are passed on to drivers in the form of higher rates,” Zorn said. “Bringing these medical costs in line with regular health care and making other reforms concerning fraud and lawsuit abuse can achieve significant rate reductions while protecting the health and safety of Michigan drivers. The bill now moves on to the House, and I look forward to their input in this process.”
As an example of potential savings, a senior married couple in Monroe who chooses PLPD coverage with Medicare as their primary medical coverage would save approximately 87% under the Senate reform.
A family in Grand Rapids with three cars and four drivers and that chooses full collision coverage and the $50,000 plus additional medical coverage option would save about 17%.