SE Oakland News

The Michigan House of Representatives has passed a bipartisan package of seven bills aimed at improving the prevention and punishment of insurance fraud. The legislation seeks to expand the definition of insurance fraud, strengthen penalties, and improve information sharing among relevant parties.

State Rep. Mike Harris, R-Waterford, led the initiative. Harris drew on his 26 years in law enforcement, where he investigated insurance fraud both as a police officer and as a private investigator. As chair of the House Insurance Committee, he used this experience to guide the legislative effort.

“Insurance fraud is a lot like shoplifting; stores pass the cost onto shoppers, meaning honest people end up paying when someone else steals,” Harris said. “It’s the same with insurance fraud. It’s not the insurance companies that ultimately bear the cost — it’s you, through higher premiums.”

According to Forbes, insurance fraud results in an estimated $308.6 billion in losses each year across the United States. This equates to roughly $900 per consumer on average (https://www.forbes.com/advisor/car-insurance/insurance-fraud-statistics/).

“One of the ways to make life more affordable is to stop crime that is driving up prices,” Harris said.

The proposed legislation—House Bills 4713 through 4719—would make several changes:

- Expand what counts as health care insurers.

- Update sentencing guidelines for related crimes.

- Allow information sharing with organizations such as the National Insurance Crime Bureau.

- Set tiered penalties based on claim numbers and monetary value.

- Include insurance fraud under racketeering laws.

- Require insurers to report suspected fraud to state authorities.

- Clarify that fines can be imposed along with other penalties or restitution.

The bills were approved by nearly all members present and will now move to the Senate for further review.