The Detroit Free Press did a big investigative series of articles abut the high rates and the amount of fraud
1) Hospitals and doctors are charging obscene rates for procedures once they find out the insurance is paying. $5000 for an MRI
2) Accident lawyers are soliciting patients with promises of big payouts and steering them to clinics that are charging very high rates for medical procedures. The lawyers then get a kickback from the medical providers. People with injuries can put in a claim for 24 hour attendant care which often means a spouse is then paid an hourly wage billed to the insurance companies
3) High auto theft rates in Detroit. In addition, Detroit has medical claims far exceeding the average for the rest of the state for reasons above.
4) 7 day insurance policies are allowed. Proof of insurance is required for license plate renewals, so motorists just buy a 7 day policy, get the plates and let the insurance lapse.
5) Estimates ae that 50% of Detroit drivers are driving uninsured creating a high incidence of hit and run
6) Many residents use addresses from relatives outside the city to get cheaper rates which means they can't vote in Detroit elections
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