Study: Auto costs can drop if lifetime care stays

By: Associated Press Email
By: Associated Press Email

LANSING, Mich. (AP) A new study says Michigan can lower automobile insurance premiums without making major changes to the state's no-fault system.

The nonpartisan Citizens Research Council released a report Monday saying auto insurers pay higher prices than other insurers for the same health care services. One option is letting auto insurers pay the amount hospitals and doctors customarily receive from other insurers rather than what they usually charge.

The change could bring auto insurers' medical costs more in line with bills paid by health insurers or government programs like Medicare and Medicaid. Another possibility is having motorists' private insurance cover their accident bills instead of their auto insurer.

An overhaul of Michigan's no-fault law is stalled in the state House over objections it would cap benefits for people catastrophically injured in accidents.

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