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Fixing no-fault is an important mission

LANSING — My mission in Lansing is to fix the many issues and problems we face in the Upper Peninsula, such as the outrageous cost of no-fault auto insurance. I make extensive efforts to be informed on this issue and many others that are special to the U.P. I try to bring that information home.

Unfortunately, a recent opinion column in the Daily Press detailed that I shared incorrect information to my constituents about the Affordable Care Act’s effects on student loans. I will admit that I did not explain this key issue as fully as possible. Student loans are not outlawed by the ACA, but this legislation has contributed to an environment which makes it challenging for students to get loans from private banks by limiting specific lending rates.

That said, there were several instances in the Daily Press’ column where what I said was manipulated or I absolutely did not state in the first place. One example is the writer’s contention I said “some medical providers charge no fault insurance companies more for services than other patients.” I never spoke about what no faults are charged. Or “a third of my constituents have license plates on their vehicle that say ‘Wisconsin'”, which is clearly not true but anybody living in Menominee or Iron Mountain — as boundary regions with Wisconsin — will see a large number of vehicles with Wisconsin plates during their day.

One thing I cannot backtrack on is Michigan’s auto no-fault system is broken and outdated. It hasn’t undergone any significant updates or changes in over 40 years, and it carries an expensive mandate that drivers can no longer afford: the requirement that everyone purchase unlimited lifetime medical benefits. This mandate has driven up the cost of Michigan’s auto insurance among the highest in the country. Drivers here pay nearly double what drivers in Wisconsin pay.

The column in the Daily Press’ contention that “no-fault companies often pay less than medical providers typically charge” is simply not true. For instance, Medicaid and workers compensation pay according to “fee schedules,” which set the maximum amounts that medical providers can receive for their services. Auto insurance companies do not have rate or fee schedules, and are required by our no-fault laws to pay more than Medicare and workers compensation.

A fee schedule is one of three primary reforms to the state’s auto no-fault system I support that will put money back in the pockets of drivers across the Upper Peninsula. The other reforms include:

– Creating a fraud authority to crack down on insurance fraud and scams. A common sense fix to end fraud, which costs the average Michigan family hundreds of dollars a year in additional premiums.

– Giving people a choice of different levels of medical benefits — similar to a cell phone plan or cable subscription — so consumers can choose what works best and what they can afford.

As a member of the House Insurance Committee, I’m committed to reducing the escalating costs of no-fault insurance. This is a complicated mission, which may take time to help Michigan’s citizens, but I was elected to fix this broken no-fault system and that’s what I intend to do

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State Rep. Beau LaFave represents the people of Delta, Dickinson and Menominee counties.

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