LANSING, Mich. – Rep. Kate Segal and the Coalition to Protect Auto No-Fault (CPAN) responded Friday to a statement calling for the elimination of the Michigan Catastrophic Claims Association as a direct hit to taxpayers and all Michigan drivers who rely on the most comprehensive insurance program in the country to provide medical and life-sustaining support in times of crisis.
On Thursday, newly named Department of Insurance and Financial Services director Kevin Clinton called for an end to the Michigan Catastrophic Claims Association (MCCA), which currently reinsures private companies for personal injury protection claims over a certain threshold amount. In Michigan, the MCCA reimburses insurers for medical costs in excess over $500,000.
“Eliminating the MCCA will do nothing to cut insurance costs yet force thousands of drivers each year onto the state Medicaid system,” said Rep. Segal. “In the end, this amounts to a hidden tax increase for Michigan residents because they’ll be the one paying costs increased Medicaid costs.”
Clinton cited “a lot of abuses, a lot of fraud,” during testimony in front of the Senate Banking Committee.
“We find it rather incredible, implausible if you will, to reference abuse and fraud in such a way with no specific details,” said CPAN President John Cornack. “This type of broad generalization demands accountability as to why this type of behavior was allowed to exist (within the association), and why it couldn’t be controlled?”
Furthermore, Cornack found Clinton’s statement to be a stab in the back for drivers throughout Michigan.
“That type of statement is an affront to every fully insured Michigan driver on the road these days,” Cornack added. “In effect, what Clinton is calling for is a bailout of insurance companies that would shove the critically injured drivers into Medicaid and heighten the burden on every taxpayer in Michigan whose money supports that system.
Cornack noted that the average U.S. auto insurance premium in 12 states is higher than Michigan.
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