MI HB5870

Replaces 12% simple interest penalty for overdue personal protection insurance benefits with treble damages (3x the overdue amount) plus reasonable attorney fees if insurer acted in bad faith.

Establishes rebuttable presumption of bad faith if payment is more than 90 days overdue, with bad faith determination based on totality of evidence at time claim became overdue.

Adds new subsection (15) to section 3157 stating that payment rate limitations only apply if benefits are not overdue under section 3142.

Clarifies that payment rates under the reimbursement cap structure are not admissible in actions against insurers for overdue benefits.

Makes technical correction updating Medicaid citation reference from 42 USC 1396w-5 to 1396w-6.