Legislation to change Michigan’s auto insurance system was defeated last week in the state House of Representatives.
HB 5013 proposed three levels of personal injury protection (PIP). A $250,000 plan – split into $225,000 for emergency care and $25,000 for post-hospital care – $500,000 and the current unlimited medical coverage for those injured in catastrophic accidents. Those levels would have provided an average savings on the PIP portion of a bill of 40 percent, 20 percent and 10 percent respectively. The bill would also have established a fraud authority, made changes to the litigation process and limited attendant care. Changes adopted to the bill before it failed would have increased the fee schedule to 160 percent of Medicare for health care services and put a five-year sunset on the entire bill.
The bill was defeated by a vote of 63 to 45.