Auto Insurance Bills Requiring $100 Premium Cut Move Ahead To Michigan House

LANSING (WWJ/AP) - Auto insurance legislation advancing in Michigan's Republican-controlled Legislature has been changed to require a $100 cut in premiums initially.

The House Insurance Committee on Thursday made an amendment to a bill that won Senate passage a week ago. The panel also voted 9-6 along party lines to set a fee schedule so health providers could charge auto insurers no more than 150 percent of what Medicare pays.

Republicans are trying to contain costs to treat people injured in car accidents — including those catastrophically hurt.

Auto insurers say they're unfairly charged much more than private and government health plans, and Michigan is the only state to require unlimited medical benefits for those severely injured in crashes.

State Representative Ed McBroom, of Vulcan, says they live near Wisconsin and his residents want reform.

"I have thousands of residents who — to escape the high costs of insurance in Michigan — are either moving to Wisconsin or are licensing and insuring their vehicle as if they were in Wisconsin, while they continue to reside in Michigan," McBroom said.

Opponents, including hospitals and Democrats, say the legislation is flawed and would hurt patients in the only state to require unlimited medical benefits for injured motorists.

An official with a home healthcare agency says no fault insurance has worked well, helping those with catastrophic injuries.

After three days of testimony in committee, the measure heads to the House.

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