Updates on Michigan Auto Insurance Legislative Changes

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I recently received this email from Kevin McKinney regarding meetings with the House Insurance Committee.  Wayne Miller's questions regarding this email are included below Kevin's update.

Thought I would give you a quick update as to what is most likely to happen when the legislature returns from is spring recess on Tues. April 9.  By all reports, the auto insurers and the Administration will move forward with their reforms -  which we have already seen, with bill introduction either the first or second week of session.  I am assuming the first week they are back but also hearing that it might be the week of April 15th

Expect hearings to start in the House Insurance Committee while the Senate appears to be more comfortable waiting to see what happens in the House rather than starting the  debate in its chambers.  Also, we are hearing that Sen. Virgil Smith may be introducing another bill that will establish a low cost policy in hopes of generating and capturing some democratic support.  To date, there does not seem to be much support  but for Virgil.  Senator Hune may try and get traction for the low cost proposal in his committee when they come back as well.

In a recent meeting with Sen. Meekhof, it was his assessment that given the fact that the Governor could not get his other priorities through ( health insurance exchange funding, road funding, Medicaid expansion), that he would now turn his attention to auto no fault reforms and that he might get some support from members out of sympathy to support the Governor on something.  I informed Sen. Meekhof that our assessment was that there would be more than a few vocal “tea party” activists” standing in the way with the insurers proposals.  He agreed, but wanted to give a heads up to CPAN.  We have also been rounding back to a number of our friends in both the House and Senate and while I do not see a significant shift in their opposition to the insurance industry’s proposals, they are looking for alternative proposals which CPAN has and continues to work on.

The Michigan Hospital Association is no longer in any discussions with the Administration on ANF, having broke off the discussions earlier this week.  This is helpful so that they are no longer hindered  because of discussions with the Administration.

CPAN has a rather busy schedule of town hall meetings, briefings with House Insurance Committee members, raising funding for our paid media campaign (going slowly btw), a big day on March 28th with two live radio programs  specifically dedicated to ANF.(CPAN will be announcing more info soon).
Finally, this update is written before today’s House Insurance Committee meeting on the MCCA.  I will be booked up with meetings until late this afternoon and then on a flight to Colorado until Tues.  So please expect a more detailed update later next week.

See you all soon.
Much to do, much to prepare for.  It will be a long and hectic couple of months ahead of us.
Kevin A. McKinney
McKinney & Associates
216 N. Chestnut St.
Lansing, MI 48933
Phone:  (517) 487-2811

Kevin, thanks very much as always for your thoughtful and thorough update. A couple of questions if you feel comfortable answering:
1.       Given the MHA broke off discussions, what are the prospects for any type of cap?
2.       Is PIP “choice” still in the mix? I.e., is that kind of what Sen. Smith is talking about below?
3.       What is your sense that lesser reforms will be likely to pass, such as family attendant care caps or fee schedules, given the evolving politics?

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