He may have been the Detroit Medical Center CEO in his past, but Mayor Mike Duggan is facing opposition from the Michigan Health & Hospital Association that includes the DMC (and pretty much every other hospital in the state) on his latest plan, D-Insurance.
We’ve outlined what makes up the high cost of car insurance in the city before. How to fix it is stuck in the Michigan Legislature, and the MHHA isn’t taking any chances as we’ve noticed they’re starting to run ads and have a website to lobby against Duggan’s car insurance reform proposal.
The site, NoDInsurance, claims that Personal Injury Protection is not a cause for higher insurance. Below is the excerpt:
Unlimited necessary medical care, known as Personal Injury Protection or PIP, is not the reason for high premiums in Detroit – yet the only thing D-Insurance does is cut your PIP benefits.
This statement that PIP is not the reason for high premiums in Detroit is contrary to the Mayor’s report as well as other media outlets, including this Bridge report clearly showing the percentage upcharge by AAA for Personal Injury Protection in many areas of the city as more than 220% percent.
The MHHA site does not provide any links to any studies to back up their claims. They do provide a long list of talking points for members.
According to Bridge:
But it’s still only a third the cost of the most expensive portion, personal injury protection (PIP), which is required and includes unlimited lifetime caps covering catastrophic injuries. PIP is the largest component of premiums, more than the cost of collision and comprehensive combined.
It looks like this battle is going to be a long fight to change car insurance in Detroit and in Michigan (as the D-Insurance requires a state law change to make happen), with rates already among the highest in the country.