Coalition Protecting Auto No-Fault

Lansing -- In response to the insurance industry’s recently released survey, Coalition Protecting Auto No-Fault spokesperson John Truscott released the following statement:

“Insurance companies released a survey today showing broad support for what I would term "cynical" auto insurance “reforms.” The one question they didn’t ask is “do you really trust insurance companies to look out for the public’s best interest?”   I think once the public and legislators know what's hidden in this legislation, the answer would overwhelmingly be “no way.” And actually, it would probably be a lot less polite than that,” said Truscott.

In response to an expected Thursday announcement of the insurance industry’s proposed legislation, Truscott said the following:

“When you dive deep into their proposals, what they’re actually doing is trying to pocket billions of hidden dollars at the expense of seriously injured people, health care providers and taxpayers. Their plan:
 

•  Closes the MCCA and allows insurance companies to keep the leftover money, likely amounting to a multi-billion dollar windfall for the state insurance industry. The insurance industry has raised MCCA mandatory fees by hundreds of millions of dollars a year that they can't justify and won't explain. I’m sure that insurance companies have hidden this fact even from Gov. Snyder, who is expected to endorse their legislation tomorrow. (This language is right in the MCCA’s Operating Agreement, Section 9.08).

• Shifts insurance company costs to taxpayers. By capping injury benefits at $1 million, the state’s most catastrophically injured victims be pushed onto the Medicaid program. Insurance companies say that Republicans support their plan, but since when have Republicans supported a  massive expansion of a government program over a private system?

• Can’t guarantee rates will decrease. Sure, closing the MCCA may eliminate some costs but what’s to stop insurance companies from turning back around and increasing rates the following year? They won't guarantee that costs won't go up to the same level within a year. 

CPAN members have said for months that they are willing to discuss reasonable, responsible changes to Michigan’s no-fault system – changes that enhance the system and reduce costs, rather than tear it down. We believe consumers would support this as well. But unfortunately, that’s not what the insurance industry survey asked and that’s not what their proposals will do.

Lawmakers need to think long and hard about whether they want to grant billions of dollars paid for by Michigan drivers, to the very insurance companies that forced the MCCA rate increases through. They could end up paying for it comes election time.”