Kalamazoo Town Hall Meeting Highlights Devastating Consequences of No-Fault Reforms
Kalamazoo – A town hall meeting held on May 8th by Rep. Sean McCann (D-Kalamazoo) at the John T. Bernhard Center on Western Michigan University’s campus discussed the devastating impact proposed no-fault insurance reforms will have on Michigan drivers, auto accident victims, and healthcare providers.
Several speakers at the meeting showed serious concern for how the $1 million cap on injury benefits included in HB 4612 will affect auto accident survivors, as well as for the millions of dollars likely to be shifted onto taxpayers as the catastrophically injured are forced into the Medicaid system.
“The proposed legislation will severely diminish the quality of life of accident survivors as well as lessen the quality of care health providers are able to provide every single patient,” said Representative Sean McCann (D-Kalamazoo). “It’s important that Michigan residents understand the disastrous impacts this legislation would have on our state.”
Research shows the proposed $1 million cap will shift millions onto taxpayers. The bill also requires fee schedules to be applied to auto injury cases, which would cost Michigan hospitals systems an average of $10 million annually. The reforms do nothing to guarantee long-term cost savings for consumers.
“No decisions should be made to change the best insurance system in the nation without the Michigan Catastrophic Claims Association (MCCA) providing evidence that it’s truly as unsustainable as the insurance industry claims ,” added Rep. McCann.
The lack of transparency with the MCCA, which currently handles auto accident claims over $500,000, and its refusal to provide documentation proving the fund is unsustainable is the subject of an ongoing lawsuit.
House Bill 4612 was passed out of the House Insurance Committee last week and is now on the House floor awaiting a vote.
