What is MCCA and why are they sending you a refund check?


LANSING, Michigan – Michigan Governor Gretchen Whitmer and Michigan Catastrophic Claims Association board members this week announced that all insured drivers in the state will receive a refund check, due to a large surplus which they currently operate.

The MCCA board of directors, of which all state insurers are required to be members, has approved reimbursements to insured Michigan drivers for the $ 5 billion surplus they currently have.

READ MORE: Michigan Drivers To Receive Insurance Refunds

The MCCA was established in 1978 – its goal is to help cover the cost of individual claims that exceed a certain threshold within a year.

In 2021, this amount is $ 600,000. If a person’s claim exceeds that over a 12 month period, then the excess amount will be covered by the MCCA fund, which will be issued to the relevant insurance company.

The problem with all of this, advocates say, is that the fund’s sole purpose is to make sure there is money in the public system to cover lifelong medical coverage for anyone receiving unlimited benefits. Injury Protection (PIP) via a no-fault policy.

“Now if there is a guaranteed refund based on an audit that drivers owe money because they have been overcharged in the past … then they are certainly entitled to it,” said Tom Judd, chairman of the Michigan Brain Injury Provider’s. Advice.

But, says Judd, “most caregivers are not paid on a large chunk of their bills dating back to July.”

On July 2, the most recent part of Michigan’s no-fault auto reform law came into effect.

Advocates for catastrophic car crash survivors say the new law, in many cases, has made it extremely difficult to find the medical services they need to survive.

Under the new law, any medical service not already covered by our federal health insurance law, which includes home caregivers and transportation to medical services, will now only be reimbursed by insurance companies. at 55% of what they were. in 2019. The law also limits the number of hours family members can provide care to just 56 hours per week.

Coalition Protecting Auto No Fault (CPAN) Chairman Devin Hutchings made the following statement in response to this week’s payback announcement:

“Gov. Whitmer and MCCA fund reimbursements by raiding a fund designed to care for survivors of catastrophic car accidents, even as victims continue to lose care due to the 45% reduction in care reimbursements imposed by the Michigan government. Without a doubt, consumers deserve to be relieved of the high premiums charged by auto insurance companies with deep pockets and jaw-dropping profits, but the source of these refunds is significant. “

While on the other side of things, Erin McDonough, executive director of the Michigan Insurance Alliance, sent the following statement to FOX 17:

“The Insurance Alliance of Michigan and our members strongly support the Michigan Catastrophic Claims Association’s efforts to put money back in the pockets of Michigan drivers. It is important that the MCCA Board of Directors do their due diligence and award a reimbursement amount that balances the return to insured drivers of the money they deserve while protecting the longevity of a fund that pays the cost. cost of medical care for Michiganders seriously injured in car crashes.

The fact that the MCCA board of directors is even considering this shows that the reforms passed with bipartisan support from the legislature and enacted by Gov. Gretchen Whitmer are working and delivering real savings for drivers statewide. We would like to thank lawmakers for staying the course on reform so that drivers can continue to save money on their auto insurance. “

FOX 17 coverage of the flawless auto-reform care crisis
May 17, 2021 – New law could have devastating consequences
June 2, 2021 – “We’re Paying the Price of Our Lives”: FOX 17 Extended Coverage
June 9, 2021 – Hundreds of survivors demonstrate on Capitol Hill
June 10, 2021 – Representative Berman introduces bill to prevent cuts
June 23, 2021 – Defenders gather at the Capitol again
June 26, 2021 – House approves $ 10 million fund
June 30, 2021 – Advocates say $ 25 million is not enough
July 7, 2021 – A family is afraid of losing caregivers
July 23, 2021 – Suppliers are starting to close their doors
Aug 4, 2021 – Patients continue to lose care
September 24, 2021 – Changes causing chaos for survivors
September 27, 2021 – ‘We can’t wait ‘ArtPrize entry highlights care crisis
October 4, 2021 – Protest outside SML Shirkey’s company
October 14, 2021 – Some insurers do not follow the intention of the law
October 27, 2021 – Lawmakers introduce new set of bills

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