Michigan's 'No Fault Insurance' Being Closely Examined - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Michigan's 'No Fault Insurance' Being Closely Examined

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LANSING, Mich. (WLNS) - The governor wants to revamp the state's 40-year-old "no fault car insurance law," but a coalition representing hospitals and drivers says it won't budge until he sees the data showing that change is needed.

Those who don't want to change the no fault law contend the insurance industry is making demands that the system is not sustainable and will eventually run out of money.

But these groups argue: prove it and show us the data.

"We have not received any evidence that it's not sustainable," said Laura Appel, with the Michigan Hospital Association.

"All that information is available. Citizens can Google the Michigan Catastrophic Claims Association. Their audits are available online. It's hog wash and a total smoke screen," said State Sen. Joe Hune, the Senate insurance chair.

There are currently no talks to resolve their differences.

The Hospital Association concedes there is nothing wrong with leaving the law alone.

"If the plan that's been on the table for several years is adopted, our patients will be devastated. So we have a huge incentive to preserve this system," said Appel.

These coalitions argue they have offered some cost savings, but the insurance industry has not responded.

But the senator counters "there's no cost containment mechanism built into the system. Virtually none. We pay for aroma therapy, music therapy even mime therapy that no fault pays for and we wonder why rates are so high," said Hune.

The House GOP Speaker is reportedly trying to piece together a bill that might fly. The governor has offered $125 in savings for motorists, but opponents claim it is a one time savings that the insurance companies could recoup later on.



Unless there is a break through, looks like at this read, no fault will not be changed.


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