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A bill in Lansing would rein-in medical costs and action consumers new choices with a ambition of blurred auto allowance premiums Wochit

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The Michigan Legislature has approved afresh to canyon legislation that would change Michigan's no-fault auto allowance system, this time proposing caps on allowance advantage to drive the amount of allowance bottomward for some customers.(Photo: 2016 photo by Salwan Georges/Detroit Free Press)Buy Photo

LANSING — A angle to check Michigan’s no accountability auto allowance arrangement may accept been delivered a afterlife draft in the accompaniment House of Representatives, but it absolutely won’t be the end of the discussion.

Lawmakers and Detroit Mayor Mike Duggan, who pushed the angle hard, are adage they’ll be aback with added proposals abutting year that will bear allowance amount reductions to Michigan drivers.

“We’ll appear aback abutting year and the year afterwards that and try afresh until we get amount cuts for everybody,” Duggan said afterward the 45-63 vote on the auto allowance angle Thursday night. “We’ve got added annual and we’ll be aback because I’m not activity to abdicate until we get article through.”

He enlisted Detroit’s business association to get complex in the action and they lobbied Democratic assembly in an attack to get the 10-15 votes that were bare to atone for the 22 Republican votes adjoin the overhaul.

“The business association in Detroit understands the abnormal access of the appropriate interests on this issue,” Duggan said. “So we’re activity to appear aback with a bigger affiliation abutting time.”

Sen. Arlan Meekhof, R-West Olive, didn’t abutment the House plan because of the appeal for binding allowance amount rollbacks, which he compared to price-fixing. He said he has added annual of how to accouterment auto allowance ameliorate that don't have to be all encompassing in adjustment for barter to apprehend amount relief.

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There are three areas that could help, he said, including: banned on what caregivers are paid; creating an ascendancy to basis out artifice by both allowance companies and customers, and capping allowances for uninsured drivers, cartage or pedestrians.

More: Michigan's no-fault auto allowance ameliorate defeated in House of Representatives

More: No-fault fixes? How added states reined in auto allowance costs

“I like the annual that we accept put advanced that do accept the abeyant for accumulation after impacting people’s medical advantage if they’re in a adverse accident,” he said. “That’s a acceptable abode to start.”

Democrats would like to see the Legislature booty on the affair of territorial ante that allowance companies use to booty non-driving-related factors — such as ZIP codes, credit array and educational accomplishment — into annual aback ambience rates. The convenance is adamantine on burghal drivers, abnormally in Detroit, who acquisition their premiums active bags of dollars college than their burghal neighbors.

“We accept a plan that brings bottomward costs and doesn’t force bodies into bankruptcy,” said House Minority Leader Sam Singh, D-East Lansing. “I am committed to advancing aback abutting anniversary and demography a attending at the bills that are still in board and authoritative abiding they get a fair hearing.”

But the affair of prohibiting companies from application non-driving factors in ambience ante is a nonstarter for abounding assembly because bringing bottomward ante in burghal areas like Detroit would beggarly adopting ante for added drivers beyond the state.

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“It’s not a amount savings, it’s a amount shift,” Speaker of the House Tom Leonard, R-DeWitt, said after the vote. “There’s no way I could ask associates who represent rural districts to vote on article that would accession ante in their areas. I’m accommodating to do aggregate I can to abate ante for drivers in the burghal of Detroit, but I’m not accommodating to do so at the amount of active up ante for the drivers in my commune or beyond the blow of the state.”

And Duggan said alike admitting he’d like to see the aforementioned ante for drivers beyond the state, he knows that’s not a solution because it would account ante to go up for drivers beyond the state.

“Everybody knows as anon as you adduce it, that it won’t pass,” he said. “We capital to do article that was politically possible.”

Leonard says he's accessible to move on to added issues.

"This is an affair we've been alive agilely on for the aftermost ages and it's sucked a lot of oxygen out of the room," he said. "The affair is not dead, but I do allegation to alpha alive on added issues."

The plan that bootless would have guaranteed a 40% abridgement in allowance ante for bodies who accept a lower akin of advantage — $250,000 in claimed abrasion protection, which would be breach amid $225,000 in hospital advantage and $25,000 in after-care costs. Bodies who chose $500,000 in PIP advantage would get a 20% cut and drivers who absitively to abide with absolute medical advantage would get a 10% abridgement The reductions would alone be accomplished on the claimed abrasion aegis allocation of allowance premiums.

Supporters of the legislation were aggravating to abode Michigan's accomplished allowance ante in the nation, in part, because of the absolute medical allowances for bodies who are catastrophically afflicted in car accidents that is a allotment of the state's no-fault auto allowance law. Those benefits, forth with allowance companies' adeptness to allegation altered ante based on area bodies live, accomplish auto allowance unaffordable for abounding people, abnormally in Detroit.

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Opponents said the bill didn't agreement amount abridgement because it accustomed allowance companies to get an absolution from the accompaniment if they could prove they couldn't accomplish money beneath the bargain rates. And that the reductions would alone be in aftereffect for bristles years.

Contact Kathleen Gray: 313-223-4430, kgray99@freepress.com or on Twitter @michpoligal

How the House of Representative voted on no accountability auto allowance check - HB 5013

Republicans voting yes: Thomas Albert of Lowell, Julie Alexander of Hanover, Sue Allor of Wolverine, Tom Barrett of Potterville, Joseph Bellino of Monroe, John Bizon of Battle Creek, Julie Calley of Portland, Ed Canfield of Sebewaing, Lee Chatfield of Levering, Tristan Cole of Mancelona, Diana Farrington of Utica, Gary Glenn of Williams Township, Beth Griffin of Mattawan, Roger Hauck of Union Township, Shane Hernandez of Port Huron, Michele Hoitenga of Manton, Pamela Hornberger of Chesterfield Township, Holly Hughes of Montague, Steven Johnson of Wayland, Bronna Kahle of Adrian, Tim Kelly of Saginaw Township, Beau LaFave of Iron Mountain, Kim LaSata of Bainbridge Township, Dan Lauwers of Brockway Township, Tom Leonard of DeWitt, Eric Leutheuser of Hillsdale, Jim Lilly of Park Township, James Lower of Cedar Lake, Aaron Miller of Sturgis, Jeff Noble of Plymouth, Dave Pagel of Berrien Springs, John Reilly of Oakland Township, Daire Rendon of Lake City, Jason Sheppard of Temperance, Lana Theis of Brighton, Curt VanderWall of Ludington, Scott VanSingel of Grant, Hank Vaupel of Handy Township, Roger Victory of Georgetown Township, Jason Wentworth of Clare, Mary Whiteford of Casco Township.

Republicans voting no: Chris Afendoulis of Grand Rapids Township, Tommy Brann of Wyoming, Laura Cox of Livonia, Kathy Crawford of Novi, Ben Frederick of Owosso, Daniela Garcia of Holland, Joseph Graves of Linden, Gary Howell of North Branch, Martin Howrylak of Troy, Brandt Iden of Oshtemo Township, Larry Inman of Williamsburg, Klint Kesto of Commerce Township, Peter Lucido of Shelby Township, Steve Marino of Harrison Township, David Maturen of Vicksburg, Michael McCready of Bloomfield Hills, Brett Roberts of Eaton Township, Jim Runestad of White Lake, Jim Tedder of Clarkston, Robert VerHeulen of Walker, Michael Webber of Rochester Hills, Jeff Yaroch of Richmond.

Democrats voting yes: Wendell Byrd, Leslie Love, Sylvia Santana, Bettie Cook Scott, all of Detroit.

Democrats voting no: Winnie Brinks of Grand Rapids, Darrin Camilleri of Brownstown Township, Stephanie Chang of Detroit, John Chirkun of Roseville, Cara Clemente of Lincoln Park, Tom Cochran of Mason, Scott Dianda of Calumet, Fred Durhal III of Detroit, Brian Elder of Bay City, Jim Ellison of Royal Oak, Pam Faris of Clio, LaTanya Garrett of Detroit, Sherry Gay-Dagnogo of Detroit, Erika Geiss of Taylor, Patrick Green of Warren, Christine Greig of Farmington Hills, Tim Greimel of Auburn Hills, Vanessa Guerra of Saginaw, Abdullah Hammoud of Dearborn, Kevin Hertel of St. Clair Shores, Jon Hoadley of Kalamazoo, Jewell Jones of Inkster, Robert Kosowski of Westland, David LaGrand of Grand Rapids, Donna Lasinski of Scio Township, Frank Liberati of Allen Park, Jeremy Moss of Southfield, Sheldon Neeley of Flint, Kristy Pagan of Canton Township, Ronnie Peterson of Ypsilanti, Phil Phelps of Flushing, Yousef Rabhi of Ann Arbor, Rose Mary Robinson of Detroit, Terry Sabo of Muskegon, Andy Schor of Lansing, Sam Singh of East Lansing, Tim Sneller of Burton, William Sowerby of Clinton Township, Robert Wittenberg of Oak Park, Henry Yanez of Sterling Heights, Adam Zemke of Ann Arbor.