Michigan Catastrophic Claims Association (MCCA), which reimburses No-Fault insurance companies for auto accident medical claims that exceed $500,000, has indicated that Michigan auto insurance policy holders will soon pay an extra $30 per vehicle. This would increase the assessment per vehicle to $175. The increase is needed to cover the costs of uncapped lifetime coverage of medical expenses resulting from auto accidents.
The association pays medical bills for roughly 12,800 accident victims across the state. Last year it paid out $927 million in claims resulting from catastrophic injuries. Michigan drivers would pay for accident victims with brain damage, paralysis and any catastrophic injuries. Currently, Michigan auto drivers must buy unlimited medical benefits as part of their coverage.
The Michigan auto insurance increase will hit the low wage earners hardest. Rep. Phil Cavanagh, a Democrat and Rep. Pete Lund, a Republican are pushing for more transparency in the MCCA system. Said Lund, ”I think you can take a look at what’s going on here and you can see there is the need for serious reform in no-fault. That’s why the rates are going up the way they are. It is not because the insurance companies are making huge profits. It is because the insurance companies are having to pay these outrageously high benefits that no other state in the USA even comes close to.”
Under Michigan’s Open Meetings Act, public bodies meetings are required to be open to the public. All can attend. Any discussions or decisions of the public body must be made in front of the public, if they desire to attend. Pending legislation in the Michigan Senate and House of Representatives may to amend Michigan’s Open Meetings Act to include the MCCA (Senate Bill 75, which was introduced on January 26, 2011; House Bill 4786, which was introduced on June 16, 2011)