A 2019 auto insurance law that promises lower rates, could mean less protection for some accident victims. The Medicare Catastrophic Coverage Act of 1988 was meant to be a lifetime promise to Michigan drivers who were involved in a traumatic auto accident. The 1988 law meant medical expenses related to an accident would be covered regardless of the victim’s own insurance.
Some residents feel that the MCCA guarantee was ripped from both claimants who already rely on the MCCA, and to future auto accident victims.
The law slashed what insurance companies are required to pay by 55 percent, forcing facilities to turn away patients or even close.
People like Shannon Perkins are even forced to come up with creative ideas to pay for their own treatment.
The 2019 law has a provision stating that a reimbursement must be issued if the surplus is 120% of the expected cost to provide lifetime care. While visiting with local educators, Representative Greg Markkanen said that legislators in Lansing are working to fine tune the law. Representative Julie Rogers from the 60th district proposed a bill that does just that.
Right now Representative Rogers’ reforms are in the insurance committee, but they remain in limbo. Rogers says that every day is important going forward to fix Michigan’s auto insurance law.