Signed by Governor Gretchen Whitmer

Vote Smart's Synopsis:

Vote to pass a bill that reduces the premium amount required for no-fault auto insurance.

Highlights:

• Requires premium rates filed by for personal protection insurance coverage under automobile insurance policies effective before July 1, 2028, must result in an average reduction per vehicle from the premium rates (Sec. 2111F):

• For policies subject to the coverage limits of $50,000, an average 45% or greater reduction per vehicle;

• For policies subject to the coverage limits of $250,000, an average 35% or greater reduction per vehicle;

• For policies subject to the coverage limits of $500,000, an average 20% or greater reduction per vehicle; and

• For policies not subject to any coverage limit, an average 10% or greater reduction per vehicle.

• Requires persons seeking an auto insurance policy to provide the insurer with a document that states the person named in the policy has qualified health coverage (Sec. 3107D).

• Defines “qualified health coverage” as health or accident coverage to which both of the following apply (Sec 3107D):

• Coverage that does not exclude or limit coverage for injuries related to motor vehicle accidents;

• Any annual deductible for the coverage is $6,000 or less per individual. The director will adjust this amount on July 1, of each year by the percentage change in the medical component of the consumer price index for the preceding calendar year, but they may not make the adjustment unless the total of the adjustment and previous unadded adjustments is $500 or more; and

• Coverage under the federal Medicare program.

• Prohibits an insurer from establishing or maintaining rates for auto insurance based on any of the following (Sec. 2111):

• Sex;

• Marital status;

• Home ownership;

• Educational level attained;

• Occupation;

• The postal zone in which the insured resides; and

• Credit score.

• Specifies a physician, hospital, clinic, or other person that gives treatment or rehabilitative occupational training to an injured person for an accidental bodily injury covered by personal protection insurance is not eligible for payment or reimbursement for more than the following (Sec. 3157):

• For treatment or training rendered after July 1, 2021 and before July 2, 2022, 200% of the amount payable to the person for the treatment or training under Medicare;

• For treatment or training rendered after July 1, 2022 and before July 2, 2023, 195% of the amount payable to the person for the treatment or training under Medicare;

• For treatment or training rendered after July 1, 2023, 190% of the amount payable to the person for the treatment or training under Medicare.

• Specifies a hospital that is a Level I or Level II Trauma Center that gives treatment to an injured person for an accidental bodily injury covered by personal protection insurance, if the treatment is for an emergency medical condition and treatment is given before the patient is stabilized and transferred, is not eligible for payment or reimbursement of more than the following (Sec. 3157):

• For treatment rendered after July 1, 2021 and before July 2, 2022, 240% of the amount payable to the hospital for the treatment under Medicare;

• For treatment rendered after July 1, 2022 and before July 2, 2023, 235% of the amount payable to the hospital for the treatment under Medicare; and

• For treatment rendered after July 1, 2023, 230% of the amount payable to the hospital for the treatment under Medicare.

• Defines “Level I or Level II Trauma Center” as a hospital that is verifies as a Level I or Level II Trauma Center by the American College of Surgeons Committee on Trauma (Sec. 3157).

Full Bill Text