Michigan Drivers To Receive Insurance Refunds News, Sports, Jobs


LANSING (AP) – All insured Michigan drivers will receive reimbursements due to a $ 5 billion surplus in a fund that reimburses insurers for medical and other expenses for those seriously injured in crashes.

The Michigan Catastrophic Fund Association’s board of directors said Wednesday it voted unanimously in favor of issuing checks. The move came two days after Gov. Gretchen Whitmer called for refunds, citing excessive premiums as well as savings under a 2019 law that limited medical spending and made unlimited health coverage mandatory.

“Details on the specific reimbursement amount per vehicle, as well as a proposed schedule and logistics, will be announced in the coming weeks,” he added. the board, made up almost entirely of insurance companies, said in a statement. “The goal is to issue the largest possible refunds to consumers while maintaining sufficient funds to ensure high quality care for those who have been catastrophically injured.”

Under the 2019 law, the state insurance director must hire an independent actuary starting next July and every three years thereafter to audit the MCCA, a state-created non-profit organization. which reimburses auto insurers for medical injury protection claims over $ 600,000. If the review – due by September – shows that MCCA’s assets exceed 120% of its liabilities, the difference must be repaid.

According to the Democratic governor’s proposal, the entire $ 5 billion surplus would be returned – $ 675 per car. MCCA executive director Kevin Clinton said this week it would be too risky not to have a surplus, saying the law could require an estimated refund of $ 100 per vehicle.

Whitmer called the pending refunds “good news.”

Many motorists currently pay MCCA $ 86 per vehicle per year. The fees were $ 220 in 2019-20, but have decreased due to the law.

“It is important that the MCCA Board of Directors do their due diligence and award a reimbursement amount that balances insured drivers’ return to the money they deserve while protecting the longevity of a fund that pays. the cost of medical care for Michiganders seriously injured in car crashes. , “ said Erin McDonough, executive director of the Insurance Alliance of Michigan.

Critics of the law said people absolutely had to be reimbursed because insurance companies were “Gouging” them for years. But they also renewed their push for stalled legislation to help catastrophic motorists who they say are losing care due to reduced reimbursements to rehabilitation facilities and other providers.

Michigan Brain Injury Provider Council President Tom Judd urged Whitmer to show “Bold leadership”. Republican legislative leaders did not pass the bills. In July, the governor and the legislature approved $ 25 million in aid for claimants who may show financial losses, although some lawmakers said it was insufficient.

“We drafted this law to include automatic reimbursement next year, and I am glad that our reforms have produced savings significant enough for the MCCA to act immediately and return this money to people even sooner.” Speaker of the House Jason Wentworth said.

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