Wish it was that easy DAN…legislators have offered reform, however, the Medical community is too comfortable accepting uncapped payments! A CT scan for an injured driver being covered under our current PIP system, for instance, can be charged at a rate of $1,820. That same procedure under the Workers’ Comp fee schedule would be charged at $244! Wonder why the state’s medical lobby is so against reform?
Oh really? You think it’s that easy to just purchase health and disability coverage? You tell me where I can buy health and disability insurance if I’ve previously had cancer or some other life threatening illness, that won’t eat up my entire monthly budget, and I’ll gladly buy it.
Health Insurance Limits are capped between $1,000,000 to $5,000,000(for the present – depending on what happens with health care which would then allow unlimited limits. It would be easy to exceed these limits over a life time. Further, if the health care law is not held up by the Supreme Court, then Insurers will once again be free to cancel anyones policy (even though paid) which does happen when there is a major illness. You should research more. Thanks
Not sure what health companies you are referring to, as none of the ones I work with have cancelled someone with a major illness(unless there was misrepresentation involved). I have had clients on life support for months and they have not even come close to exhausting the limits under their health policy. The MCCA is just another system for cheapskates to mooch off of. It’s funny that the tort systems in other states(without unlimited PIP) seem to work just fine when people have the appropriate health & disability coverage in place.
Thank goodness I no longer live in the God forsaken state of Michigan. Unlimited PIP, ridiculous. PIP should not even be in existence. Optional Medical Payments is all that should be provided, and if someone doesnt get their own health insurance, that is their problem. 38 States have no PIP, and they do just fine with FAR lower insurance premiums.
Mary, if an insurance company cancels someone after a major illness, they are still liable for any and all costs associated with that illness indefinitely…… and they would not even be receiving premiums, very few insurers actually cancel policies, unless fraudulent activity or statements were given by the individual.
If the State of Michigan would collect the full MCCA premium every year FROM everyone we wouldn’t have this under funding problem. There are thousands of individuals that purchase a policy but only pay for one month’s coverage. The state never gets the full MCCA fee($175) for the entire year. Simple solution……everyone should pay the MCCA fee with their car registration every year.
Agreed Richard…and the irony is it will likely be one of the nearly 20% of licensed Michigan drivers who intentionally doesn’t buy insurance (and therefore doesn’t pay the MCCA premium) who’s care the MCCA will end up picking up the tab for after a tragic accident!
Did I read this right; Michigan now charges $175 for every car insured in the State for catastrophic injury? I’ll bet the number of “catastrophic injuries” skyrocketed when this law went into effect.
How stupid!
Doug, Michigan has unlimited no-fault benefits, and has since 1973. Every policy has a mandatory “per risk excess of loss” reinsurance above $500,000. This reinsurance is provided by the Michigan Catastrophic Claims Association. The MCCA charges every insurer the same fee, which is passed on to the policyholders.
The MCCA fee is engineered to both meet the cost of claims in the current year and to make up for shortfalls in prior years.
The net effect is that primary insurers can’t compete on pricing the upper layer of coverage – that cost is the same for everyone. Second, since MCCA can operate on a cash-flow basis, there is little risk that it will be unable to make its payments, which helps reduce the insolvency risk for the underlying carriers — the entire industry and driving population shoulders the costs.
Dan,
If you have health problems, you cannot purchase disability insurance. Not to mention that individual health insurance is quite expensive and there are considerable gaps in coverage the auto policy picks up.
We need to have the MCCA premium paid directly to the Sec of State when people renew their plates so at least they have paid the MCCA fee their bills will be paid under even when they let their insurance lapse.
Personal responsibility is greatly lacking in this state. Everyone wants the government to solve their problems.
the MCCA and Insurance Reform proposals in Michigan lead to a very sad situation. Consumers hear Insurance Reform with the suggestion of being able to chose your medical limit at a cost savings as being a great solution. But, if injured badly in an accident and the chosen limit is exhausted, what happens? The real solution is suggested by CWS. Medical charges for care associated with an Auto accident are so out of line with those charged for Work Comp or other non accident related injuries. If these charges were put on the same scale, Michiganders could have the best of all. They could have the unlimited medical coverage as is currently available on the auto policy and not have to chose a lower limit for premium savings. Based on the average auto premium in the state, how could the annual savings for a decreased medical limit ever be good if there were a auto accident injury? The unlimited benefit should be there for IF there is a need.
A plain and simple explaination: this premium is going up because of the change in the helmet law in Michigan. Less motorcyclists wearing helmets = more severe head injuries and hospital stays requiring rehab. We all have to pay for the mototrcyclists now. Dont even give me the argument that they are “required” to carry an additional personal injury rider on their insurance if they choose not to wear a helmet. This is not enforced and most riders will not pay this significantly extra insurance premium to ride “helmetless”.
I am so sick and tired of paying for everyone else in this country. This is another sign that this once great country is no longer the best place to live.
Julius Sadabo,
It has NOTHING to do with the helmet law!
The fee was enacted because people are suing at the drop of a hat.
I’m sure,if YOU had an accident,you would be on the phone to your attorney,as fast as you could !!
The MCCA is a joke. How about everyone in Michigan take some personal responsibility and purchase health & disability coverage, and then cap the PIP?
Wish it was that easy DAN…legislators have offered reform, however, the Medical community is too comfortable accepting uncapped payments! A CT scan for an injured driver being covered under our current PIP system, for instance, can be charged at a rate of $1,820. That same procedure under the Workers’ Comp fee schedule would be charged at $244! Wonder why the state’s medical lobby is so against reform?
“DAN says:
How about everyone in Michigan take some personal responsibility and purchase health & disability coverage, and then cap the PIP?”
Dan, are you saying *gasp* that there should be a mandate that everyone purchase health insurance?!?!…
Oh really? You think it’s that easy to just purchase health and disability coverage? You tell me where I can buy health and disability insurance if I’ve previously had cancer or some other life threatening illness, that won’t eat up my entire monthly budget, and I’ll gladly buy it.
Dan:
Health Insurance Limits are capped between $1,000,000 to $5,000,000(for the present – depending on what happens with health care which would then allow unlimited limits. It would be easy to exceed these limits over a life time. Further, if the health care law is not held up by the Supreme Court, then Insurers will once again be free to cancel anyones policy (even though paid) which does happen when there is a major illness. You should research more. Thanks
Not sure what health companies you are referring to, as none of the ones I work with have cancelled someone with a major illness(unless there was misrepresentation involved). I have had clients on life support for months and they have not even come close to exhausting the limits under their health policy. The MCCA is just another system for cheapskates to mooch off of. It’s funny that the tort systems in other states(without unlimited PIP) seem to work just fine when people have the appropriate health & disability coverage in place.
Not true, stop spreading lies about carriers cancelling policies when they have been paid for.
Thank goodness I no longer live in the God forsaken state of Michigan. Unlimited PIP, ridiculous. PIP should not even be in existence. Optional Medical Payments is all that should be provided, and if someone doesnt get their own health insurance, that is their problem. 38 States have no PIP, and they do just fine with FAR lower insurance premiums.
Mary, if an insurance company cancels someone after a major illness, they are still liable for any and all costs associated with that illness indefinitely…… and they would not even be receiving premiums, very few insurers actually cancel policies, unless fraudulent activity or statements were given by the individual.
If the State of Michigan would collect the full MCCA premium every year FROM everyone we wouldn’t have this under funding problem. There are thousands of individuals that purchase a policy but only pay for one month’s coverage. The state never gets the full MCCA fee($175) for the entire year. Simple solution……everyone should pay the MCCA fee with their car registration every year.
Agreed Richard…and the irony is it will likely be one of the nearly 20% of licensed Michigan drivers who intentionally doesn’t buy insurance (and therefore doesn’t pay the MCCA premium) who’s care the MCCA will end up picking up the tab for after a tragic accident!
And base it on household members – as a single why should I pay the same as a family of seven?
Did I read this right; Michigan now charges $175 for every car insured in the State for catastrophic injury? I’ll bet the number of “catastrophic injuries” skyrocketed when this law went into effect.
How stupid!
Doug, Michigan has unlimited no-fault benefits, and has since 1973. Every policy has a mandatory “per risk excess of loss” reinsurance above $500,000. This reinsurance is provided by the Michigan Catastrophic Claims Association. The MCCA charges every insurer the same fee, which is passed on to the policyholders.
The MCCA fee is engineered to both meet the cost of claims in the current year and to make up for shortfalls in prior years.
The net effect is that primary insurers can’t compete on pricing the upper layer of coverage – that cost is the same for everyone. Second, since MCCA can operate on a cash-flow basis, there is little risk that it will be unable to make its payments, which helps reduce the insolvency risk for the underlying carriers — the entire industry and driving population shoulders the costs.
Dan,
If you have health problems, you cannot purchase disability insurance. Not to mention that individual health insurance is quite expensive and there are considerable gaps in coverage the auto policy picks up.
We need to have the MCCA premium paid directly to the Sec of State when people renew their plates so at least they have paid the MCCA fee their bills will be paid under even when they let their insurance lapse.
Personal responsibility is greatly lacking in this state. Everyone wants the government to solve their problems.
the MCCA and Insurance Reform proposals in Michigan lead to a very sad situation. Consumers hear Insurance Reform with the suggestion of being able to chose your medical limit at a cost savings as being a great solution. But, if injured badly in an accident and the chosen limit is exhausted, what happens? The real solution is suggested by CWS. Medical charges for care associated with an Auto accident are so out of line with those charged for Work Comp or other non accident related injuries. If these charges were put on the same scale, Michiganders could have the best of all. They could have the unlimited medical coverage as is currently available on the auto policy and not have to chose a lower limit for premium savings. Based on the average auto premium in the state, how could the annual savings for a decreased medical limit ever be good if there were a auto accident injury? The unlimited benefit should be there for IF there is a need.
A plain and simple explaination: this premium is going up because of the change in the helmet law in Michigan. Less motorcyclists wearing helmets = more severe head injuries and hospital stays requiring rehab. We all have to pay for the mototrcyclists now. Dont even give me the argument that they are “required” to carry an additional personal injury rider on their insurance if they choose not to wear a helmet. This is not enforced and most riders will not pay this significantly extra insurance premium to ride “helmetless”.
I am so sick and tired of paying for everyone else in this country. This is another sign that this once great country is no longer the best place to live.
IF I OWN A FLEET OF VEHICLE DO I PAY FOR EACH ONE
OR IS THIS COVER ON ONE POLICY
Julius Sadabo,
It has NOTHING to do with the helmet law!
The fee was enacted because people are suing at the drop of a hat.
I’m sure,if YOU had an accident,you would be on the phone to your attorney,as fast as you could !!