Most people seem to be proud of the 33-year history in Michigan’s no-fault insurance, where people of all ranks were assured of state-of-the-art coverage in the event they are involved in a catastrophic accident that may change their lives forever. They would get everything from including the best medical care, wheelchairs, rehabilitation, modified vans, housing, medication, as well as attendant care. At present, it costs motorists around $145 per year to pay for this non-profit fund that is solvent and has certain unique features.
All along most motorists in the state of Michigan thought that they will never feel the need to tap funds from the Michigan Catastrophic Claim Association. However, closed-head brain injury as well as spinal cord injury does not spare anyone. There are over 1,200 people who are likely to suffer from catastrophic injuries in motor vehicle accidents in Michigan this year, according to estimates. This is more than 25,000 since the catastrophic fund was established in Michigan.
The insurance giants in Michigan have earned enough profits in all these years – even during the economic crisis, but they have now put forth ideas in the Legislature to bring about changes in the no-fault system as well as the catastrophic fund stating that they wish to lower auto insurance costs for all.
House Bill 4936 and Senate Bills 293 and 294 have now been introduced for consideration by the House and Senate Insurance Committees. If these bills are passed into a law, they will destroy Michigan’s no-fault system effectively. This will allow individuals to opt for lesser coverage and if they suffer catastrophic injuries they will end up having inadequate coverage. There will be a cap on the attendant-care benefits even for quadriplegics as well as those who have suffered brain injuries as well. This is likely to decimate the jobs in the care industry that is so vibrant in Michigan as of now.
Part of the game plan of the insurance industry is to get the uninsured drivers in Michigan to opt for coverage, where they can choose lesser coverage as well as lower premiums, which are not inclusive of the whole catastrophic fund charges. Hence, in case the motorists or their children suffer catastrophic injuries, they will become impoverished in all likelihood and the cost of medical care will be transferred to Medicaid rather than the catastrophic fund. This is only like to transfer the burden to the taxpayers in Michigan.
