The Coalition Protecting Auto No-Fault (CPAN) has issued a detailed summary analysis of Michigan Senate Bill 248. (For a full copy of the analysis click here.) The detailed analysis states in pertinent part that:
[t]his Bill would: (1) significantly reduce reimbursements to medical providers; (2) substantially limit attendant care benefits to catastrophically injured patients who are cared for at home; (3) create a new catastrophic claims commission for accidents occurring after the effective date of the legislation; (4) create a new insurance fraud authority; and (5) adopt a new test to determine if insurance premiums are excessive. CPAN believes this bill is seriously flawed, will create great instability in the Michigan auto no-fault system, impair patient access to medical care, seriously reduce revenue to the Michigan health care industry, result in a significant loss of jobs, and completely fail to reduce auto insurance premiums for the majority of Michigan citizens.
The State of Michigan has a unique system currently allowing for unlimited first-party benefits which include all reasonably necessary medical expenses. If the proposed reforms are enacted the Michigan No-Fault system would become arbitrarily regulated. This arbitrary regulation, as many medical providers claim, may diminish the quality of care available to those who have been seriously injured in motor vehicle accidents or motorcycle accidents in the State of Michigan.
Everything considered, there is no guarantee that No-Fault insurance premiums will be reduced if this reform is enacted by the Michigan legislature.