L. Brooks Patterson waves cane triumphantly as he seeks to shed wheelchair in recovery from 2012 auto accident. ELEPHANTS SPAR: It's Snyder vs. Patterson in GOP Battle over No-Fault Auto
|
||||||||||
| Printer Friendly Story View |
Gov. Rick Snyder has his eyes on the prize: a political coup on no fault auto insurance by saving the average motorist $250 per year.
Opposing the guv is one of the state's other powerful Republicans -- L. Brooks Patterson, Oakland County executive.
The outcome is personal for Patterson; in 2012 he was seriously injured in an auto accident. He uses a wheelchair and the insurance program is still paying his medical bills.
Patterson has become one of the state's foremost advocate for unlimited no-fault medical benefits. This issue has become a battle between the two powerful Republicans.
Snyder wants to eliminate the Michigan Catastrophic Claims Association (MCCA) that provides unlimited lifetime medical coverage for victims -- like Patterson -- seriously injured in auto accidents.
Under the governor's plan the average family's premiums could drop $250 a year.
While the MCCA would be dissolved, those already receiving benefits would not be affected under the plan.
Snyder proposes capping personal injury protection at $1 million, which he says is still much higher than every other state.
Drivers also would be charged $25 a year to help fund Medicaid because a tax on health insurance claims isn't generating as much as anticipated.
Michigan has some of the highest auto insurance rates in the U.S. and is the only no-fault state out of 12 in the U.S. where motorists pay $175 per car per year to a fund the coverage of catastrophic injuries for life.
Perhaps in an effort to stave off legislation now being considered in Lansing, MCCA announced Monday a nearly 15 percent cut in the assessment it receives from auto insurance companies.
MCCA announced the personal injury protection (PIP) assessment would be $150 per vehicle per year instead of $175.
Under Michigan's No-Fault insurance law. PIP coverage is mandatory and provides for the payment of unlimited, lifetime medical auto insurance benefits.
Neither Patterson nor his driver were wearing seat belts in the crash. Patterson's leased Chrysler 300 was being driven by a 60-year-old former state police trooper, James Cram, who suffered serious injuries.
The cost of these benefits is reflected in the insurance premiums all Michigan policyholders pay.
The MCCA assessments are used to reimburse auto insurance companies for PIP benefits paid in excess of $545,000 per claim. The MCCA paid out $1 billion -- more than $149 per insured car -- in 2014 for claim costs resulting from catastrophic injuries. The majority of these catastrophic claims involve brain and spinal cord injuries, multiple fractures, and back and neck injuries.
Currently, the MCCA has an estimated $292 million deficit, which represents more than $44.00 per insured car.
Since its creation by the Michigan Legislature in 1978, the MCCA has faced steadily increasing liabilities associated with unlimited catastrophic claim costs.
Michigan's unique no-fault auto insurance law provides unlimited lifetime coverage for medical expenses resulting from auto accidents. Michigan is the only state in the nation that requires all drivers to purchase these unlimited benefits. The state with the next highest mandatory benefit level (New York) requires $50,000 of coverage.
Each year an increasing number of individuals are receiving benefits from catastrophic automobile accidents, comprising approximately 58 percent of claim payments.
Additional information on the MCCA, including claim payment statistics, audit reports, financial statements and answers to frequently asked questions is available at www.michigancatastrophic.com, and from the Michigan Department of Insurance and Financial Services at http://www.michigan.gov/difs
Patterson first clashed with former House Speaker Jase Bolger over the proposed changes in the program. "Many will remember when Patterson, while taping Michigan Public TV's 'Off the Record,' was asked about Bolger, and he pulled a black comb out of his pocket, placed it under his nose, and responded, 'Adolf Bolger, you mean?'
It's hard to count the number of times an auto no-fault overhaul has been tried, only to crash and burn. People may not like their insurance rates, but they also do like not having to worry about who's going to pay their medical bills if they're in a serious car crash.
Michigan Public Radio commented: "But we may be reaching critical mass on having something done about insurance, whether it's the Bolger plan or something else. The reason? Detroit.
"That's because a big part of this plan is a stripped-down, low-cost, low-benefit auto policy that would be offered to low-income drivers in places like Detroit, where there are a lot uninsured drivers, and those who do have insurance pay stratospheric premiums. As we've talked about before on It's Just Politics, There is no fixing Detroit -- making it a place to attract a larger middle class -- without dealing with the cost of insurance.
"There will be great rewards waiting for the Republican who can pull off an auto no-fault revamp, especially that elusive benefits cap."br>
###
| Printer Friendly Story View |
|
|
Dave Rogers |
|
|
|
Printer-Friendly Story View
0200 Nd: 04-14-2024 d 4 cpr 0
12/31/2020 P3v3-0200-Ad.cfm
SPONSORED LINKS
12/31/2020 drop ads P3v3-0200-Ad.cfm