Rep. Hall on Auto No-Fault Reform Bill
So how does 63rd District Republican State Rep. Matt Hall feel about the Michigan No-Fault Auto Insurance reform bill that the legislature sent to the governor's desk late Friday? "I feel great. We were able to work out a deal with the governor, the Republicans and the Democrats working together", said Hall, on the 95.3 WBCK Morning Show with Tim Collins on Tuesday. "I think that we have a good plan that brings guaranteed relief to the people of Michigan."
Hall says those rate reductions will start in 2020 and last for eight years. He says that right now, under current law, Michigan drivers must buy unlimited lifetime coverage. Under the new bill, drivers will have five choices. "Now you'll have the choice of taking that unlimited coverage, at a 10% reduction of what you pay now, all the way up to a complete 'opt-out'. That means, if you have Medicare, you can completely opt-out of no-fault personal injury protection, so you're not paying for it twice."
Hall says another provision of the bill could save families a lot more. "Unless you have a $6000.00 or higher deductible plan, you can also opt-out with your private insurance. Everyone in your house would have to have either auto insurance personal injury insurance, medicare, or some other kind of commercial health insurance."
Another change in the law is that insurance companies would have to submit rate increases for approval, something Hall says they don't have to do now.
Hall says one option for drivers will have $250,000 in coverage at a 35% reduction and $500,000 with a 20% reduction. "The reductions are not as much as they were under the Republican plan. The reason for that is that this plan compensates hospitals more." Hall says they don't want hospitals to go out of business, and the extra compensation for hospitals was a compromise he supported. "There's still a fee schedule, so they (hospitals) are capped at what they can charge and can no longer gouge drivers with exorbitant, out-of-control billing."
Another compromise that Republicans made was to have more language regarding "Non-Driving" factors in that insurance companies may use to determine regional rates. He said some of those factors need to be used, because driving in some areas, such as Detroit, come with more risk.
"I ran on this, and I'm grateful that we've delivered to the people of Michigan what we said we would, which is guaranteed lower auto insurance rates."