MCCA Brags About ‘Positive Effects’ of No-Fault Reform, Despite Overwhelming Evidence of its Failure

LANSING, Mich.—(Jan. 29, 2025)—While the Michigan Catastrophic Claims Association (MCCA) brags about the “positive effects” of the 2019 auto insurance reforms, CPAN—the consumer protection organization fighting for fair insurance laws—today pointed to the ongoing care crisis that has killed some of the state’s most vulnerable residents and left thousands of others without needed care, along with continued high premiums for Michigan drivers, as irrefutable proof that the law has failed. 

In a press release this week, the MCCA—the quasi-public insurance program that reimburses insurers for auto injury claims over $635,000—boasted that consumers would be saving $8 dollars on their premiums this year “thanks to strong fiscal management and the ongoing impact of the 2019 bipartisan auto no-fault reforms,” even though Michigan drivers continue to pay among the highest rates in the country. 

“While crash survivors suffer—and while all Michigan drivers continue to pay out the nose for their insurance premiums—the MCCA and its board of insurance executives has the gall to brag that they’re saving drivers a whopping $8 a year, or the cost of a couple coffees from Starbucks,” said Tim Hoste, CPAN president. “Michigan consumers want real savings, along with the peace of mind that they’ll be cared for should they get into a serious accident. The 2019 law has failed on both fronts, and it’s time for the Michigan Legislature to step in and do something about it.” 

Because of the nearly 50% cut in reimbursements for catastrophic care included in the 2019 no-fault reform package, long-term care providers are losing millions of dollars every year and can no longer afford to take new patients. A study by the nonprofit public health institute MPHI found that as of April 2022, the reimbursement cut had led to more than 7,000 patient discharges, the loss of more than 4,000 health care jobs, and the closure of 24 businesses. And most tragically, at least 15 people have died.

Meanwhile, an October 2024 statewide poll commissioned by the Detroit News and WDIV found that only 13 percent of Michigan drivers have seen their premiums decrease since the 2019 law was passed. About 50 percent said their premiums went up, while 31 percent said their premiums had stayed the same and 6 percent weren’t sure. 

Hoste noted that the few who saved money likely purchased insurance policies with limited personal injury protection (PIP) coverage levels, meaning they won’t be adequately protected should they be involved in a crash.

“Saving lives and saving money is not a partisan issue,” Hoste said. “Now that there is split control of the Legislature in Lansing, it’s time for both parties to come together and pass laws that protect people, not insurance company profits.”