KJS traffic control camera

Holton and Whitehall roads intersection in Muskegon County.

(KENDRA STANLEY-MILLS)

LANSING, MI -- The House Insurance Committee put its stamp on and voted out no-fault reforms Thursday after taking more than nine hours' worth of testimony this week, sending the fast-moving legislation to the House floor.

Michigan has no-fault auto insurance. Every driver is required to buy auto insurance. When an accident results in serious injury, lifetime medical expenses over $530,000 are covered by the Michigan Catastrophic Claims Association, which reimburses the person's auto insurer for those costs. To provide that, the MCCA currently assesses a fee of $186 per vehicle.

Legislators, meanwhile, have been looking to bring down Michigan's auto insurance costs, which some say are the highest in the nation, by taking a look at the no-fault system.

An altered version of the legislation approved by the Senate last week passed out of the House committee with nine "yes" votes, six "no" votes and two members passing.

Rep. Tom Barrett, R-Potterville, offered the substitute that the committee adopted and voted out. He said it would:

• Tie the reimbursement rate for the catastrophically injured to 150 percent of the medicare reimbursement rate. This is a departure from the Senate-passed version, which tied reimbursement rates to what commercial health insurance carriers pay.

• Require a rate rollback of $100 per vehicle from insurance companies for two years. Statewide it would be a $700 million savings to consumers in the first year, Barrett said.

• Maintain the unlimited lifetime medical benefits included in the Senate version.

Democrats offered a series of amendments. One would have removed the $150,000 appropriation for a staff person to create a report, which makes the bill referendum-proof. It failed. So too did attempted amendments that would have required rates to roll back by a specific percentage.

House Insurance Committee Chair Rep. Tom Leonard, R-DeWitt, said he didn't have time to vet the amendments Democrats presented but would be open to considering some of them on the House floor.

"I am willing to work with anybody, anytime to address one of Michigan's biggest problems," Leonard said.

The committee heard testimony from dozens of people on both sides of the issue for three days. Interest was so high that overflow rooms were established in the House Office Building, and throughout the week many catastrophically injured showed up to voice their opinions.

That stands in stark contrast to the Senate process, where legislators rushed new language through committee before some had a chance to read it and then substantially changed the language again before voting on it the next day.

Former Rep. Jim Howell and his catastrophically injured son, Sam, were among those who testified in opposition to the legislation.

Sam was accomplished in science and had made plans to go to Harvard and MIT for advanced degrees after his time at Michigan State University. Then he was injured.

"Now I got to community college with an aide and my mother with me," Sam Howell said.

Jim Howell urged the committee to stand up to the insurance industry.

"Members. Do the people's work. Stand up to the inevitable industry and leadership pressure. Be the deliberative body the Senate wasn't. Slow this down to a thoughtful process," Howell said.

Insurance groups and the Michigan Chamber of Commerce testified in support of the bill.



"While still analyzing changes made to Senate Bill 248 in House Insurance Committee today, the Insurance Institute of Michigan pledges to keep supporting meaningful and long-term reform of the state's no-fault auto insurance system so we can continue deliver the best benefits in the country while controlling the costs for auto insurance consumers," said Pete Kuhnmuench, executive director of the Insurance Institute of Michigan.

But some who testified, including wheelchair-bound people who came from far away, were steadfastly against the legislation.

Charlie Parkhill, disabled himself from an ocean accident, runs a rehabilitation clinic called The Recovery Project. He said he was willing to come to the table, but the current Michigan law provides for some of the best care available.

"There aren't any states that provide the quality of care... that we do," Parkhill said.

Emily Lawler is a Capitol/Business reporter for MLive. You can reach her at elawler@mlive.com, subscribe to her on Facebook or follow her on Twitter: @emilyjanelawler.