The Michigan House of Representatives on Tuesday approved bipartisan legislation needed to better prevent and punish insurance fraud.

The seven-bill package would update existing laws by expanding the definition of what constitutes insurance fraud, strengthening penalties, and improving information reporting and sharing so that insurance fraud is easier to detect and stop.

The effort to combat insurance fraud was led by state Rep. Mike Harris, R-Waterford. During his 26 years in law enforcement, Harris investigated insurance fraud while on the force and as a private investigator. This shapes his perspective as chair of the House Insurance Committee.

“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.”

An estimated $308.6 billion is stolen via insurance fraud each year in the United States, according to statistic by Forbes. That translates to an average of about $900 per consumer.

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

House Bills 4713-4719 collectively aim to strengthen Michigan’s laws against insurance fraud by:

• Expanding the definition of health care insurers (HB 4713)
• Updating the Criminal Code of Procedure to establish sentencing guidelines (HB 4714)
• Authorizing information sharing with the National Insurance Crime Bureau (HB 4715)
• Establishing tiered penalties for insurance fraud based on the number of claims and monetary value (HB 4716)
• Include insurance fraud under the definition of racketeering (HB 4717)
• Requiring insurers to report fraud to the Department of Insurance and Financial Services (HB 4718)
• Clarifying that fines can be imposed alongside (not in lieu of) other penalties or restitution (HB 4719)

The bills, which passed with nearly unanimous support, now go to the Senate for further consideration.