House Bill 5951 offers insurance consumers a cheaper package – at the expensive of their health benefits.
Cheaper is not always better
- HB 5951 disingenuously offers to create cheaper options for buyers in Michigan’s Auto No-Fault market. without spelling out is how Michiganders with catastrophic injuries will pay for their long-term care.
- No one wants to be involved in a serious accident, but unfortunately, we cannot predict whether or not this will happen. Many times, catastrophic injuries require sustained rehabilitative care which can reach into the millions of dollars in medical benefits.
This bill would create huge cost shifts – most onto the tax payer, with little in return to the insured.
- Once the $250,000 cap in medical benefits is exceeded, auto accident survivors will be funneled into tax-funded programs like Social Security and Medicaid, shifting the burden of their long-term care onto tax payers.
- In a study done on Colorado’s repeal of its no fault insurance system, more than half of those who voluntarily chose PIP protection, chose the option covering $5,000 or less. In today’s medical costs that wouldn’t cover less than a day’s worth of a hospital stay.
- Everyone agrees we need comprehensive reform of our auto no fault laws, quick cost cutting on the front end may save a few bucks a month for the consumer, but have detrimental effects in the long-term to those with a catastrophic injury and are NOT the solution. Capping the medical benefits that come with our current insurance laws will result in the overuse of programs like Medicaid.