216 North Chestnut Street, Lansing, MI 48933 (517) 882-1096

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FOR IMMEDIATE RELEASE:

Thursday, April 23, 2015

CONTACT:
Josh Hovey
jhovey@truscottrossman.com
517-712-5829

House Insurance Committees Version of No-Fault Bill

Unworkable in Current Form
LANSING The House Insurance Committee today passed its version of an auto insurance
reform bill on a party line vote despite strong objection from health care providers, legal
experts and consumer advocates.
The committee passed a substitute version of Senate Bill 248 on a party line vote that included
a government mandated price control for private medical providers, creates a new a fraud
authority and a new catastrophic claims association, caps attendant care and requires a $100
per-vehicle premium reduction for two years.
CPAN is extremely disappointed that the House Insurance Committee has moved the bill
forward to the House floor without reaching consensus on critical components of the bill, said
Coalition Protecting Auto No-Fault President John Cornack.
Citing language that would hold medical providers who treat auto accident victims to charging
150 percent of Medicare, Cornack stated that the bill would cost health care providers millions
of dollars each year.
The fee schedule in this bill is completely unworkable from a health care provider standpoint,
said Cornack. Without question, the reimbursement structure of SB 248 will cost hospitals tens
of millions dollars each. This is not a scare tactic. If SB 248 passes as is, trauma centers will be
threatened in every area of the state. From that standpoint alone, this bill is irresponsible.
Cornack also took issue with the fact that the fraud authority proposed in SB 248 only considers
fraud perpetrated by claimants and not insurance providers.

Board of Directors
Brain Injury Association of Michigan Eisenhower Center Michigan Academy of Physician Assistants Michigan Assisted Living
Association Michigan Association of Chiropractors Michigan Association for Justice Michigan Brain Injury Providers Council Michigan
Citizen Action Michigan Health & Hospital Association Michigan Association for Home Care Michigan Nurses Association Michigan
Orthopedic Society Michigan Orthotics and Prosthetics Association Michigan Osteopathic Association Michigan Protection and Advocacy
Service Michigan State Medical Society Michigan Independent Case Management Council

216 North Chestnut Street, Lansing, MI 48933 (517) 882-1096

ProtectNoFault.com Facebook.com/ProtectNoFault Twitter.com/ProtectNoFault

The committee heard very compelling testimony detailing how insurance companies are
denying care for injured people based on falsified information and fraudulent practices. That is
just as fraudulent as someone who files a false claim, yet this committee chose to do nothing,
said Cornack.
SB 248 also includes a $150,000 appropriation, which disqualifies the bill from being subject to
a public referendum.
It's clear that those who supported this bill on the committee know that this is a bad bill
because they have included an appropriation in the bill so as to make it referendum-proof.
There is no other reason to add an appropriation to the bill than to deny voters' rights, said
Cornack.
The bill now moves on to the House Floor where CPAN members will be working with
lawmakers to introduce amendments.
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Board of Directors
Brain Injury Association of Michigan Eisenhower Center Michigan Academy of Physician Assistants Michigan Assisted Living
Association Michigan Association of Chiropractors Michigan Association for Justice Michigan Brain Injury Providers Council Michigan
Citizen Action Michigan Health & Hospital Association Michigan Association for Home Care Michigan Nurses Association Michigan
Orthopedic Society Michigan Orthotics and Prosthetics Association Michigan Osteopathic Association Michigan Protection and Advocacy
Service Michigan State Medical Society Michigan Independent Case Management Council