LANSING, Mich., March 30, 2022 — State Rep. Mary Cavanagh (D-Redford), along with fellow members of the Michigan House of Representatives, introduced a package of bills last week with bipartisan support to address concerns related to transparency and accountability with Michigan’s auto no-fault law and auto insurance system.


“Insurance rate setting is a purposefully opaque process that has overcharged Michigan drivers for years. It’s time we shine some light on it,” Cavanagh said. “Despite paying the second highest rates in the country, Michiganders are getting only a fraction of the care they deserve. While insurance companies rake in record profits, thousands have had their care ripped out from under them. That’s simply unacceptable. Rates are set by the Michigan Catastrophic Claims Association (MCCA), and my bill will bring transparency to the process which calculates those rates and ultimately determine what is covered. While these bills would lower costs and improve rates, they’re only the beginning of our efforts. Unfortunately, fixing the host of issues with our no-fault laws will take time.”


Descriptions of the bills in this package can be found below.

  • House Bill 5996 would address the issue of prohibiting insurers from denying payment if the treatment is “not usually associated” with accepted treatment. Sponsored by state Rep. Julie Rogers (D-Kalamazoo).
  • House Bill 5997 would place penalties on insurance companies that unreasonably deny claims. “Bad Faith Denial.” Sponsored by state Rep. Yousef Rabhi (D-Ann Arbor).
  • House Bill 5998 would fix the loophole where some court rulings have basically exempted all regulated and licensed businesses (like insurance companies) from Michigan’s Consumer Protection Act. Sponsored by Rabhi.
  • House Bill 5999 would require the Department of Insurance and Financial Services to post their reports on auto no-fault complaints, billing issues, and utilization review publicly on its website. The reports will include the number of cases per patient. Sponsored by state Rep. Kevin Coleman (D-Westland).
  • House Bill 6000 would require auto insurers to get their rates approved by DIFS, with an 8% profit margin cap. Sponsored by state Rep. Rachel Hood (D-Grand Rapids).
  • House Bill 6001 would require payments to be issued within 30 days when the Michigan Catastrophic Claims Association (MCCA) is statutorily mandated to issue refund payments to consumers. Sponsored by state Rep. Kelly Breen (D-Novi)
  • House Bill 6002 would prohibit insurance companies or the third-party companies that are associated with the insurance company from reviewing administrative appeals. Sponsored by state Rep. Padma Kuppa (D-Troy).
  • House Bill 6003 would prohibit insurers from refusing to pay provider bills on the basis that the bill is not in the insurer’s preferred format or on the insurer’s preferred form. Sponsored by state Rep. Regina Weiss (D-Oak Park).
  • House Bill 6004 would require the Michigan Catastrophic Claims Association (MCCA) to disclose the calculations used in rate setting. The MCCA is the private unincorporated, nonprofit association created by the Michigan Legislature which reimburses no-fault insurance companies for Personal Injury Protection (PIP) medical claims paid in excess of a set amount under policies of insurance providing unlimited lifetime coverage. Sponsored by Cavanagh.
  • House Bill 6005 would prohibit rate discrimination on the basis of any category protected under the Elliott-Larsen Civil Rights Act (marital status, weight, sex, etc.), credit scores or other financial stress measures, and geographical location within Michigan AND require insurance companies that have affiliate networks or the same parent company to offer consumers a quote that is the lowest they would get within the company or network. Sponsored by state Rep. Jewell Jones (D-Inkster).