MCCA Sets 2019/2020 Insurance Company Assessment
Once again Michigan Catastrophic Claims Association (MCCA) fees are increasing. Beginning July 1, 2019 the annual fee per vehicle will be $220. (The prior fee was $192 per vehicle.) The assessment per insured vehicle represents $177.00 to cover anticipated new claims and expenses and $43.00 to address a $3.9 billion estimated deficit related to existing claims. Ten years ago the fee per vehicle was $124.89.
Since MCCA’s inception in 1978, 40,715 claims have been reported with over $17.2 billion having been paid. Of those claims, 17,751 remain open. Over the most recent five years from 2014 to 2018, the number of claims reported to the MCCA increased by 47%. In 2018 alone, the MCCA paid out $1.2 billion for claim costs resulting from catastrophic injuries.
All auto insurance companies operating in Michigan are required to pay the assessment to the MCCA to cover the cost of Personal Injury Protection (PIP) benefits guaranteed under Michigan’s no-fault insurance law. PIP coverage is mandatory and provides for the payment of unlimited, lifetime medical benefits. These costs are reflected in the auto insurance premiums all Michigan policyholders pay.
Additional information on the MCCA, including claim payment statistics, audit reports, financial statements and answers to frequently asked questions is available at the MCCA’s website http://www.michigancatastrophic.com/ and from the Michigan Department of Insurance and Financial Services website https://www.michigan.gov/difs.