NFIB Urges Michigan Legislature to Keep No-Fault Reform On-Track

Date: March 16, 2021

Bill introduced would undo auto insurance savings for small business, consumers

The National Federation of Independent Business (NFIB), the voice of small businesses in Michigan and across the country, is urging the Legislature to pump the brakes on HB 4486, introduced by Rep. Douglas Wozniak, that would change the medical fee schedule designed to rein in decades of overcharging by brain injury clinics across the state.


“Michigan’s new auto no-fault law, which passed with bipartisan support, has been a positive for small business owners and consumers across the state.  Instead of making changes to a reform package that hasn’t even gone into complete effect, the Legislature needs to keep its focus on reopening up the economy,” said Charlie Owens, NFIB Michigan State Director. “The cost savings from reduced auto insurance rates has been one of the few bright spots in the past year for small businesses who have faced extended and uncertain closures from the Governor and MDHHS due to Covid-19.  I can’t think of a worse time for the Legislature to do anything that would increase costs for small business.” 


The medical fee schedule, which does not take effect until July 2, 2021, has been cited by the Michigan Catastrophic Claims Association (MCCA) as the Number 1 reason it has reduced the yearly per-vehicle fee by 60% over the last two years. It’s also a primary reason drivers are seeing lower rates on their car insurance premiums.


A recent report by The Zebra found Michigan’s auto insurance premiums have dropped by 20% since the new no-fault law took effect on July 2, 2020.


“Small businesses are the backbone of our economy and the Legislature should be doing everything it can to ensure these businesses can rebound from the pandemic — and that includes keeping Michigan’s recent auto no-fault law reforms intact,” Owens said.


Under Michigan’s old no-fault system, small businesses that operated a fleet of vehicles were forced to purchase unlimited, lifetime medical benefits to insure their vehicles even though injuries an employee sustained in an accident would be covered under Workers’ Compensation Insurance.

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