Politics

Governor 'won't be bullied' into accepting insurance reform she dislikes

May 23, 2019, 7:29 AM

It wasn't exactly a "back off, Dan," but Gov. Gretchen Whitmer delivered a response to a Detroit billionaire he doesn't hear often: "I’m not going to be bullied into doing something" about auto insurance that doesn't satisfy her concerns. 

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Gov. Gretchen Whitmer: "It's ipmortant that we get this right."

The Detroit News reports that Whitmer, faced with mounting pressure to make a deal with the Republican legislature, while Dan Gilbert waits in the wings with a threatened petition drive to remake the state's auto insurance landscape to his liking, is standing her ground for now. Her position: Reform is necessary, but it must be comprehensive, addressing not only costs but other factors that have made Michigan's auto insurance the most expensive in the nation. 

Jonathan Oosting reports:

"...I’ve certainly had a dialogue with Dan Gilbert. I know he’s frustrated with the lack of movement on this issue. I get that. But the fact of the matter is it’s important that we get this right.”

Whitmer is also facing pressure from a prominent group defending Michigan's no-fault insurance law, which is urging her to stand by her veto pledge rather than “settle” for the GOP reform legislation.

Whitmer has said that she wants to stop insurance companies from using "non-driving factors" in determining rates, a sore point with Detroiters, who find themselves paying even higher costs, due to their zip codes, or poor credit scores. Democrats also want a guarantee of rate reductions, not an implied promise that may not be followed through on. 

(In negotiations, the governor and legislators) are also discussing “alternative fee schedules” for medical providers, said (Senate Majority Leader Mike) Shirkey spokeswoman Amber McCann. The Republican proposals would each cap medical charges for auto insurance crash victims at the same level as workers’ compensation,  which providers argue is too low.

Republicans expect to wrap up the talks this week or early next, at which point they'll likely know if a deal is possible.

Gilbert's organization told News columnist Nolan Finley that the Detroit billionaire "is not waiting any longer" for the legislature and Whitmer to come to terms on reform. Finley wrote in his column last Sunday:

Worried that time is running out to mount a successful petition drive should the negotiations fail, the head of the Rock Ventures empire has formed a ballot committee, hired the state’s top election lawyers and will be out on the street gathering signatures within a matter of days.


Read more:  The Detroit News


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