Lawmaker’s plan ensures transparency and accountability

State Rep. Ryan Berman, of Commerce Township, today introduced a bipartisan plan increasing transparency and accountability within the Michigan Catastrophic Claims Association (MCCA).

Under the plan, the state Legislature would have the ability to review a yearly audit of the MCCA – a private, nonprofit entity which reimburses insurance companies for any auto-related medical claims over $555,000 – to determine whether or not the association is operating with a surplus.

“The MCCA has grown from a value of $9 billion in 2009 to over $22 billion today,” Berman said. “That to me raises concerns. We need to make sure we hold the association accountable for annual vehicle assessment increases, and make sure the increases are justified – if they are needed at all.”

Michigan requires all car insurance companies to belong to the MCCA and pay an annual per-insured-vehicle assessment to fund the association. The nonprofit association last year increased the annual fee $22, rising from $170 to $192 per vehicle – an increase of 13 percent.

“If the Legislature concludes the MCCA is operating with a surplus, drivers should be reimbursed,” Berman said. “I believe this could be part of a broader solution when it comes to making car insurance more affordable for all Michiganders.”

House Bill 4111 now moves to the House Insurance Committee for consideration.