Arch mi benefits8/17/2023 ![]() ![]() Tim Hoste, president of the Coalition Protecting Auto No-Fault (CPAN), issued a response statement in which he said: “The powerful and well-funded auto insurance lobby should look in the mirror to find the real driver of rate increases being forced down the throats of Michiganders. “Everyone who got $400 per-vehicle refunds this past spring are going to be sending $48 of it back to the MCCA because of the disruption caused by the Court of Appeals’ decision.” “If you pull the string on part of the medical fee schedule, the sweater unravels quickly,” said Erin McDonough, executive director of the Insurance Alliance of Michigan, in a statement released this spring. That decision, which left the state on the hook to pay the lifetime medical costs for auto crash victims who were injured before the state’s 2019 insurance reform, resulted in “higher-than-anticipated claims costs,” according to the MCAA. USAA Casualty Insurance Co., the court ruled that changes to Michigan’s No-Fault Act that cut lifetime health benefits in 2019 couldn’t be applied retroactively. Officials from the MCAA blame a recent Michigan Court of Appeals decision for the deficit, along with lower than expected investment returns. It’s also the same fund that paid out refunds of $400 per vehicle last year when there was a surplus of about $5 billion. Fees for Jthrough Jwere set by the MCAA this spring to address an estimated $3.7 billion deficit in the fund used to reimburse auto insurance companies after they cover more than $600,000 in medical costs for any given claim. ![]()
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