Bipartisan Victory: Michigan Cracks Down on Insurance Fraud Schemes

In a rare show of unity that crossed party lines, the Michigan House of Representatives this week passed a sweeping bipartisan package of bills aimed at cracking down on insurance fraud and strengthening protections for drivers across the state. The legislation, led in part by Rep. Ron Robinson of Utica, marks one of the most significant bipartisan reform efforts of the 2025 session.

The plan — a collection of seven bills numbered House Bills 4713 through 4719 — was crafted with input from lawmakers on both sides of the aisle. Its intent is to modernize Michigan’s enforcement tools, improve transparency, and ensure that drivers are not unfairly burdened by fraudulent claims and organized scams that drive up insurance costs.

“This is about protecting Michigan families from the financial harm caused by insurance fraud,” Robinson said following the package’s passage. “We closed loopholes, toughened enforcement, and gave prosecutors real tools to go after bad actors. Most importantly, we did it with bipartisan support.”

The legislation expands Michigan’s Health Care False Claims Act to cover auto insurers that provide personal injury protection (PIP) benefits, a critical change given the state’s history of complex no-fault insurance rules. By formally recognizing auto insurers as “health care insurers” under the act, prosecutors will find it easier to pursue cases of fraud involving medical claims linked to auto accidents.

Robinson sponsored House Bill 4713, which specifically implements that change. The provision was supported not only by members of his own caucus but also by colleagues across the aisle who recognized the need to address gaps in Michigan’s current law. Other measures in the package increase penalties for fraudulent acts, extend protections to whistleblowers who report suspected fraud, and require insurers to report instances of suspected misconduct. Civil fines will be allowed for violations, and insurance fraud will now be included under Michigan’s racketeering statutes, giving law enforcement more tools to pursue organized networks engaged in fraudulent activity.

The bill package cleared the House floor with support from both parties, a point that Robinson and others highlighted as proof that lawmakers can still find common ground on issues that affect everyday Michiganders. “Fraud is not a partisan issue,” Robinson said. “Whether you sit on the left or the right side of the aisle, you want drivers to have confidence in the system. I’m grateful to my colleagues who came together to get this done.”

Lawmakers emphasized that protecting consumers and keeping auto insurance costs in check are priorities shared across the chamber. For years, high insurance premiums in Michigan have drawn criticism from residents, and while rates have stabilized somewhat after recent reforms, concerns remain that fraud still inflates costs unfairly. By tackling fraud directly, legislators hope the bipartisan package will restore trust in the system while easing financial pressure on families.

Insurance fraud in Michigan has long been considered a hidden tax on drivers. Fraudulent medical claims, staged accidents, and inflated repair bills all contribute to higher premiums. According to the National Insurance Crime Bureau, organized fraud schemes cost Americans billions of dollars annually, with auto insurance fraud making up a substantial portion of those losses. The Michigan package does not attempt to overhaul the entire no-fault system — itself the subject of major reforms in recent years — but instead targets enforcement and accountability measures. Lawmakers hope that by strengthening the ability to prosecute fraud and protect whistleblowers, they can curb abuses that hurt consumers.

“This plan ensures fraudsters can’t abuse the system while families bear the cost,” Robinson said. “Michigan drivers deserve a system that’s affordable and honest.”

With passage in the House, the legislation now heads to the Michigan Senate for further debate and consideration. If approved there, it would go to the governor’s desk for signature into law. Observers note that because the bills passed with bipartisan support in the House, they are likely to find receptive ears in the Senate as well. The bipartisan cooperation also increases the chances that the governor will sign the package into law, continuing the momentum toward greater transparency and consumer protection.

In today’s often divided political climate, the advancement of the insurance fraud reform package stands out as a model of bipartisan cooperation. Lawmakers who backed the effort argue that the success of these bills shows that when legislators put people over politics, real progress is possible. Robinson, who has made consumer protection and accountability central themes of his work in Lansing, emphasized that point after the vote. “This is what happens when we listen to each other and work together,” he said. “It’s proof that bipartisan solutions can still move Michigan forward.”

As the legislation moves to the Senate, advocates hope it will serve not only as a tool to fight fraud but also as a reminder of the positive results that can come when leaders work in partnership on behalf of their constituents.