MCCA fee needs review

If there ever was a situation of having a fox guard the hen house, it’s Michigan’s Catastrophic Claims Association.
Jan 31, 2013

Every insured driver in Michigan pays an annual fee each year, which is referred to as the MCCA fee. Many state vehicle owners don’t know what the fee is or what it covers. Michigan drivers often look over their policy and notice a large chunk of their insurance premium going toward the MCCA fee.

Last year, the MCAA fee was $175 per vehicle.

In Michigan, medical coverage for someone injured in an automobile accident is unlimited — no cap, and endless medical coverage regardless of the expense.

For people severely injured, this includes all rehab, at-home care and outfitting their home for handicap accessibility. The cost can be astronomical, especially if someone experiences irreparable damage at a young age.

Insurance companies are responsible for the first $500,000 in medical expenses and the MCAA pays anything above that amount.

Aside from the high cost, the MCCA does have benefits.

Crash survivors and their families benefit greatly from the unlimited medical coverage provided by the association. A major auto accident cannot only cripple a family physically and emotionally, but also financially. If you are caught in this situation, our state’s auto law can make a huge difference in your way of life.

As with most government programs, controversy almost always follows. The chances of being in a life-altering car crash are minimal for most drivers.

Nobody likes to be forced to pay for something they will never need. Thousands of people have benefited from the unlimited medical coverage in Michigan over the years; however, millions of people have been paying for it. Being the only state with the law also draws a lot of criticism.

State representatives are trying to rework the law so Michigan residents can select the amount of coverage they purchase versus the mandatory unlimited coverage required right now. Putting a limit on medical coverage could save Michigan drivers a lot of money.

For starters, our elected officials want to take a look at the association's books. Judge Clinton Canady III ruled recently that the books should be opened under the state's Freedom of Information Act.

But guess what? The MCAA — composed of insurance executives and no public members — has decided to appeal the decision.

We’re not saying whether the MCAA is a good or bad idea, but it surely needs to be reviewed. And the association shouldn’t stand in the way.

The public has a right to know what’s going on inside their walls — especially when the fee is high, often increased and is paid by us.

Fee-setting bodies operate much more fairly in the light than in the dark.

Our Views reflects the majority opinion of the members of the Grand Haven Tribune editorial board: Kevin Hook, Cheryl Welch, Matt DeYoung and Fred VandenBrand. What do you think? E-mail us a letter to the editor to news@grandhaventribune.com or log-in to our website and leave a comment below.
 

Comments

GHAPSMother

Yes!!! I am tired of paying too much of my hard earned money on this catastrophic insurance. Why is Michigan the only state with it? Our residents across the state are also some of the ones hardest hit by the recession, yet we have to pay a ton of money for this special interest thing. I say get rid of it. Throw it out.

charlie3

I TOTALLY AGREE, & HAVE COMPLAINED ABOUT THIS UNFAIR FEE FOR SEVERAL YEARS TO MY INSURANCE COMPANY. IT STARTED AT APPROX. $3.00 PER YEAR PER AUTO & HAS GONE UP EVERY YEAR SINCE WITH NO ACOOUNTABILITY! WHY THE CAR OWNERS IN THE STATE OF MICHIGAN ALLOW THIS TO GO ON YEAR AFTER YEAR IS BEYOND ME...THROW IT OUT!! THE INSURANCE EXECUTIVES IN CHARGE HAVE ALLOWED IT SO THEY WON'T HAVE TO PAY IT THEMSELVES!....HONEST AUTO OWNERS REALLY NEED TO WAKE UP TO THE FACT THEY ARE BEING TAKEN DOWN A GREEDY ROAD!!

Tri-cities realist

It would be MORE EFFECTIVE to pick and choose which words you SHOUT.

charlie3

WHICH WORDS DIDN'T YOU UNDERSTAND?

WalmartWolverine

charlie, you are shouting. Wait until this thing gets going and then, LET'EM HAVE IT!

charlie3

DANG RIGHT I'M SHOUTING..CAN'T WAIT..THIS HAS BEEN GOING ON FOR TOO LONG AS IT IS!

rainbowjoe

When I left Michigan for the mountains in the early 1980s, no fault insurance had just started and, if I recall correctly, we had the lowest insurance rates in the country. I returned to the Great Lakes State not too long ago to learn we have the highest insurance rates in the nation, largely due to the catastrophic coverage. I've been with the same insurance company for decades and have never made a claim, but now I'm getting soaked. Something needs to change.

charlie3

AT LAST...SOMEONE WHO HAS BEEN PAYING ATTENTION & IS TIRED OF PAYING SOMEONE ELSE'S BILLS

GH55

When this kind of thing exists in only one state there should be a stringent review of what is going on. My opinion is it is a rip off of the consumers. We should all be flooding our representatives to at least get an open review of the system.
I have also heard of people setting themselves up as the care givers and paying themselves exorbitant salaries because there is no review and no accountability.
This needs to change.

savageau20

That the same BS Engler said the last time the system was changed. Cost/fees will go down, blah, blah. How's your rates today? Just pay your premium, do not make a claim, and keep you mouth shut.

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