West Michigan Policy Forum Announces Support for Auto Insurance Reform Urges Legislature to Act

GRAND RAPIDS, Mich.-May 3,2019   The West Michigan Policy Forum (WMPF) Board of Directors is announcing its support for auto insurance reform as one of its policy priorities and is urging the legislature to focus on several key goals as they deliberate on the pending bills headed for the State Senate. These goals include:

• Maintaining Michigan’s position as a national leader in auto insurance coverage

• Reducing the premium burden on Michigan families

• Increasing competitiveness for better affordability for all Michigan drivers

• Ensuring changes are market driven and do not shift costs from one area of state to another

“Michigan is the most expensive state in the nation for auto insurance. It’s unacceptable that, according to a report from the University of Michigan, auto insurance rates are unaffordable for median incomes in 97% of Michigan’s zip codes and perpetuate poverty*. This is a statewide problem that deserves a comprehensive solution,” stated John Kennedy, WMPF Chairman.  “The issue is complex, but one only has to see the vast difference in allowed payments between Medicare and auto insurance to know reform is sorely needed.  Should an MRI that costs a patient $484 under Medicare cost $3,259 when covered by auto insurance?”**

The WMPF is urging the legislature to finally address this problem and pass legislation that includes the following reforms:   

• Fraud & attendant care

• Prohibit conflicts of interest

• Discourage unnecessary lawsuits

• Increase efficiency in claim payments

• Empower consumers while ensuring Michigan options exceed coverage in other states

“The WMPF seeks to help Michigan become a Top-10 state in the nation by identifying and removing barriers to competitiveness and providing an environment for entrepreneurs to create and communities to thrive. True auto insurance reform is a part of that equation that needs to happen now,” continued Kennedy.

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*University of Michigan Poverty Solutions – Car Insurance Policy Brief, 2019  https://poverty.umich.edu/research-publications/policy-briefs/auto-insurance-and-economic-mobility-in-michigan-a-cycle-of-poverty/

**Presentation by Mayor Mike Duggan to the Michigan Senate Insurance Committee, Feb. 13, 2019

About the West Michigan Policy Forum:

The West Michigan Policy Forum’s mission is to create jobs and opportunities in Michigan by removing barriers to competitiveness, empowering grassroots advocacy within the state’s business community and moving forward with legislative policy directives geared toward making Michigan a top-10 state in the nation.