Michigan Catastrophic Claims Association

What is the Michigan Catastrophic Claims Association

The Michigan Catastrophic Claims Association (MCCA), a private non-profit unincorporated association, created by the state Legislature in 1978. Michigan’s the only state where auto insurance no-fault law provides unlimited lifetime coverage for medical expenses from auto accidents. The MCCA fund will reimburse auto no-fault insurance companies for each Personal Injury Protection (PIP) medical claim paid more than a set amount. Currently, MCCA will reimburse Michigan auto insurance companies all medical costs over the $580,000 total.

What is the new MCCA fee?

All auto insurance companies operating in Michigan pay to cover the catastrophic medical claims occurring in Michigan. All auto insurance policyholders pay for the assessments. Only Michigan insured’s who choose the unlimited medical option will have to pay the $100.00 per vehicle fee. Insureds choosing lower limits under Michigan’s revised no-fault law will avoid the assessment. The $0 fee will continue for these insureds as long as MCCA does not run a deficit.  The current assessment period will be effective July 2, 2020, to June 30, 2021. This assessment will decrease $220 to $100, effective July 2, 2020, for insureds keeping the unlimited medical option.

Exceptions from the Michigan Catastrophic Claims Association:

  • Historic vehicles will only pay 20 percent of the full assessment charged for vehicles effective July 1, 2003. The assessment for historic cars for 2020 is $20.00.
  • Motorcycles also have to pay into the fund but, motorcycles are not a motor vehicle under the no-fault law. Motorcycle drivers will not have the same unlimited medical coverage provided by the Michigan no-fault policy.  Insureds have the option of purchasing additional medical coverage under a Michigan motorcycle insurance policy.

How much money does the Michigan Catastrophic Claims Association have:

As of June 30, 2019, financial statement, The Michigan Catastrophic Claims Association has over 21.8 billion in assets to pay back insurers for payments over 580,000.

The 55% reduction comes from savings created by cost controls for medical treatment and other changes made to Michigan’s no-fault insurance law on June 11, 2019. MCCA’s projects to erase the deficit of approximately $2.0 billion and reduce the annual MCCA assessment by roughly $1.0 billion.

Since 1979, MCCA has reported more than 38,407 catastrophic claims. Based on current estimates, the total claims paid, including the future payments for the 16,998 remaining active claims, are expected to exceed $85 billion. This figure assumes inflating costs for products, services, and accommodations necessary for the care, recovery, and rehabilitation of injured persons throughout their lives.