State Representative jewell jones (D-Inker), as well as other members of the Michigan House of Representatives Democratic Caucus last week introduced a package of bills with bipartisan support to address concerns about transparency and accountability with the state’s no-fault law and auto insurance system.
“Insurance companies are posting record profits while hardworking Michiganders grapple with rising prices and reduced coverage,” Jones said. “We need an insurance system that works for us, not just for insurance companies. My bill would tackle the practice of redlining by prohibiting auto insurance companies from using zip codes to charge certain communities, typically those that are black or brown, higher prices. It’s time to fix this problem and give car accident survivors the care they need.
Jones sponsored House Bill House 6005 which would prohibit price discrimination based on any category protected by the Elliott-Larsen Civil Rights Act (marital status, weight, sex, etc.), credit scores or other measures financial stress, and the geographic location within Michigan and requiring insurance companies that have affiliated networks or the same parent company to offer consumers the lowest quote they would get within the company or network.
Also introduced was House Bill 5996, which would address the issue of prohibiting insurers from withholding payment if the treatment is “not generally associated” with the accepted treatment. Sponsored by the State Representative. Julie Rogers (D-Kalamazoo); House Bill 5997 which would impose penalties on insurance companies that unreasonably deny claims. “Evil Denial of faith.” Sponsored by the State Representative. Youssef Rabhi (D Ann Arbor); House Bill 5998 which would fix the loophole where some court rulings have essentially exempted all regulated and licensed businesses (like insurance companies) from Michigan’s consumer protection law; House Bill 5999 would require the Insurance Department and financial services to post their reports of no-fault complaints, billing issues, and auto usage reviews publicly on its website. Reports will include the number of cases per patient. Sponsored by the State Representative. Kevin Coleman (D-Westland); House Bill 6000 would require auto insurers to have their rates approved by the DIFS, with a profit margin cap of 8%. Sponsored by the State Representative. Rachel Hood (D-Great Rapids); House Bill 6001 would require payments to be issued within 30 days when the Michigan Catastrophic Loss Association (MCCA) is legally mandated to issue reimbursement payments to consumers. Sponsored by the State Representative. Kelly Breen (D-novi); House Bill 6002 would prohibit insurance companies or third-party companies associated with the insurance company from reviewing administrative appeals. Sponsored by the State Representative. Padma Kuppa (D-Troy); House Bill 6003 would prohibit insurers from refusing to pay vendor invoices on the grounds that the invoice is not in the insurer’s preferred format or on the insurer’s preferred form. Sponsored by the State Representative. Regina Weiss (D-Oak Park) and House Bill 6004 would require the MCCA to disclose the actuarial calculation used in setting the rates. Sponsored by the State Representative. Mary Cavanagh (D-Redford.