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  • IMQ Reports That Michigan Hospitals Leery Of New Insurance Laws

    (EMAILWIRE.COM, December 02, 2011 ) Asheville, NC -- When policymakers return to Lansing later this year, they will be deciding the fate of a House bill that would limit the amount an insurance company has to pay out for auto accidents. Hospitals across the state are worried that the benefit limits will be inadequate, causing them to lose money.

    Advocates of the law say that the measure will help control skyrocketing auto insurance premiums in Michigan. Opponents say that the law will shift up to $30 million in hospital costs to the public just to cover Medicaid recipients.

    In truth, auto insurance in Michigan currently costs about $23 more than it does in other states and insurance companies will not commit to lowering premiums in the state if the law passes. On the other hand, the law will force drivers to sue each other, losing half of their potential benefits to attorneys. All that will do is force accident victims to cover more of their own medical bills out of pocket if possible, leaving any unpaid balances to be written off by the hospitals. It seems Michigan motorcycle insurance and auto insurance companies are the only ones who might benefit from this new law.

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