The Insurance Institute of Michigan said it supports a legislative proposal that would allow policyholders to choose a managed care option for their medical coverage under the state’s no-fault auto insurance system at a reduced premium. The bill would allow an auto insurance company to offer a managed care option at a lower premium. IIM said a managed care system would allow insurance company representatives to monitor and supervise an injured person’s medical care and deliver care through a pre-approved provider network.
Michigan is the only state that requires insurance companies to provide unlimited, lifetime medical benefits to motorists injured in auto accidents. The managed care system would continue to provide for all allowable expenses for all reasonably necessary products, services and accommodations as required by the state’s auto insurance law. The rising cost of medical care has driven up the cost of auto insurance in recent years, according to IIM Executive Director Peter Kuhnmuench. For example, it now costs insurance companies an average of $24,531 for each personal injury protection claim, which includes medical expenses for those injured in auto accidents. This compares to $10,877 five years ago.
IIM represents more than 90 property/casualty insurance companies and related organizations operating in Michigan.
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