#TBT: Insuring a brighter future for Michigan

Categories: Health Care,In Case You Missed It,Reinventing MI

It’s #ThrowbackThursday once again, and this week we’re taking a look at the House Insurance Committee, chaired by Rep. Pete Lund.

Whether tackling tough issues like automobile, health and life insurance or modifying the state’s insurance code, this committee has been hard at work during the 2013-14 legislative session. Here’s a sample of a few issues they’ve examined:

Benefits_Health_InsuranceHealth Insurance

House Bill 4816 (Health Care Premium Increases Attributable to the ACA): Requires health insurers to include the estimated financial impact the Affordable Care Act (ACA) has on consumers’ premiums in their billing statements. Unfortunately, there is still some confusion as to whether the ACA is saving people money or increasing their monthly bills. HB 4816 would help consumers know exactly what costs they are incurring. The bill is currently pending before the Senate Committee on Insurance.

Senate Bills 61 and 62 (Public Acts 4 and 5 of 2013): Allowed Blue Cross Blue Shield of Michigan to reorganize as a nonprofit mutual disability insurer under the state insurance code. As a result, BCBSM now pays state and local taxes and is subject to the same rules and regulations as other health insurers in the state.

Life Insurance

HBs 5146 – 5150 (PAs 139 through 143 of 2014): Updates various aspects of the life insurance section of the state insurance code,  allowing life insurers to be more competitive in the marketplace and providing clarity to consumers.

Auto Insurance

HB 4612: Reforms numerous areas of Michigan’s auto no-fault insurance system. Michigan drivers are faced with auto insurance rates much higher than many neighboring states. HB 4612 continues to give residents the best coverage in the nation while still providing financial relief to all our state’s drivers. The bill is currently on second reading in the House.

Insurance Code

HB 5792: Amends Chapter 13 of the insurance code and incorporates updates to the Model Holding Company System Regulatory Act adopted by the National Association of Insurance Commissioners. The model act is designed to strengthen regulatory oversight over insurance providers by:

  • Increasing the amount of information available to the Director of the Department of Insurance and Financial Services (DIFS);
  • Requiring additional risk reporting from insurance holding company systems; and,
  • Placing supplementary safeguards on the mergers and acquisitions of Michigan-based insurance companies.

HB 5823: Adds a new chapter to the Insurance Code — Chapter 17 — that requires insurers and insurance holding company systems to conduct an internal “Own Risk Solvency Assessment” and submit an annual report detailing these assessments to the department.

By making sure all of Michigan’s insurance companies are on the same playing field with one another, and that they remain financially sound and able to protect and pay policyholders’ claims, the House Insurance Committee is protecting our state’s brighter future and individuals’ well-being.