State Rep. Mike Harris and the Michigan House of Representatives on Tuesday approved a bipartisan plan sponsored by Harris and his colleagues to better prevent and punish insurance fraud.

An estimated $300 million is lost to insurance fraud annually in the United States, according to recent reporting by Forbes. The fraud costs American consumers an average of $900, mainly in the form of higher premiums. The package of bills would strengthen penalties and improve communication to help insurers and law enforcement detect and deter fraud.

“The bad actors who defraud insurers steal from all of us. Our premiums go up to pay for their theft,” said Harris, R-Waterford. “With better communication and coordination, insurers and investigators will be equipped to uncover fraud and put a stop to it. And tougher penalties will empower prosecutors to punish fraudsters appropriately for their costly crimes. Our bipartisan plan will protect the hard-earned dollars of homeowners, drivers, patients, and small-business owners.”

Harris, a retired Waterford police sergeant, investigated insurance fraud during his career in law enforcement and private investigation.

House Bills 5191-5197 create a wider array of criminal and civil penalties against those who commit insurance fraud, require prompt reporting of suspected insurance fraud to authorities, and improve information sharing with the National Insurance Crime Bureau, a trade association dedicated to investigating insurance fraud.

Harris is the sponsor of HB 5194, which would include insurance fraud within the legal definition of racketeering, giving prosecutors greater ability to charge and seek appropriate penalties against insurance fraudsters.

HBs 5191-5197 passed the House with overwhelming bipartisan support, and they now proceed to the Senate for consideration.