Changes in Michigan Catastrophic Claims Association Fees and the Impact on Accident Survivors
Starting next month, Michigan drivers will see adjustments in the fees they contribute annually to a fund dedicated to supporting severely injured accident survivors. This change affects the contributions made to the Michigan Catastrophic Claims Association (MCCA).
For those opting for unlimited personal injury benefits, the fee will decrease from $90 to $82. In contrast, drivers selecting other benefit levels will experience a slight increase, with fees moving from $20 to $23. These adjustments aim to address a significant $2.1 billion deficit in the fund.
Kimberly Bezy, Executive Director of the MCCA, explained the rationale behind the new rate: “We really take a look at how much that is going to be and determine if our current funds are going to sufficient. So, if there is not sufficient money, then we look at any deficit or any shortfall and we actually amortize that about by no less than 15 years.” Historical data from the MCCA website shows these rates remain lower than most years spanning 2003 to 2021.
Since 2021, changes in auto insurance laws have allowed drivers to opt out of previously mandatory unlimited personal injury protection. Following these changes, the MCCA, guided by Governor Gretchen Whitmer, distributed $400 rebate checks, using what was reported as surplus funds.
However, this move has been criticized by advocates for severely injured accident survivors. They argue that the policy change and rebate issuance have contributed to the current deficit and highlight systemic issues in prioritizing necessary care for those with serious injuries.
Maureen Howell from the advocacy group We Can’t Wait expressed concern over the governance of the MCCA: “Nobody that is a family member or a provider or anyone that would have the ability to understand the situation from the standpoint of survivors is involved in the makeup of the MCCA.” She accuses the association and its board—composed of insurance companies—of self-interest.
The MCCA maintains it is committed to its mission of supporting injured individuals. A recent press release highlighted that the association is nearing $25 billion in total payments since its creation in 1978. According to Bezy, survivor payments have increased in some areas following the reforms.
Despite this, concerns persist. By the end of 2023, there were 15,388 open cases, with advocates worried about the real impact of “unlimited” policies. Reduced reimbursement rates for treatment have forced many care providers out of business, further complicating access to required care for survivors, as reported by NPR.
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