Sen. Zorn supports historic auto insurance reform

LANSING, Mich. — Sen. Dale Zorn on Friday voted to support a bill to lower auto insurance rates in Michigan.

“The auto insurance reform is a good step forward that will provide personal injury protection rate reductions from 10% to 100% by capping medical fees, removing rating factors and requiring prompt insurance payments to providers,” said Zorn, R-Ida. “While no bill is perfect and knowing that unforeseen consequences may arise that will need to be reexamined, I will continue to work on better access to long-term, post-acute rehabilitation.”

Senate Bill 1 would rein in out-of-control medical costs, cut fraud and conflicts of interest in the auto insurance system, and offer drivers choices in addition to the option of keeping unlimited coverage similar to what is currently required.

Drivers with qualified medical coverage — such as employer health insurance or Medicare — would now be able to fully opt out of personal injury protection coverage if that insurance allows medical coverage for auto-related injuries.

“The key cost savings in this reform addresses the problem of auto insurers paying some hospitals and health care providers 400% more than what health insurers pay — which results in ridiculously higher rates for our auto insurance,” Zorn said. “Bringing these inflated medical costs in line with regular health care, reigning in fraud and reducing lawsuit abuse will achieve significant rate reductions while still protecting Michigan drivers.”

SB 1 would also cut the announced $220 annual Michigan Catastrophic Claims Association (MCCA) fee by 80% for all options other than unlimited coverage. People already receiving care through the MCCA will continue to get lifetime care under their current unlimited benefit policy as promised.

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