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Critics Slam Michigan Injury Fund as Fees Shift, Survivors Struggle

by Celia

Starting next month, Michigan drivers will see changes in the fees they pay toward a fund that supports people severely injured in car crashes.

The Michigan Catastrophic Claims Association (MCCA) announced that fees will decrease slightly for drivers who opt for unlimited personal injury protection (PIP), from $90 to $82 per vehicle. For those choosing lower levels of coverage, the fee will rise from $20 to $23.

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MCCA Executive Director Kimberly Bezy said the new rates are designed to help address a projected $2.1 billion deficit. “We look at what’s needed and determine if current funds are enough,” Bezy said. “If not, we amortize any shortfall over no less than 15 years.”

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Despite the changes, the fees remain lower than most years between 2003 and 2021, according to the MCCA’s historical data.

In 2021, Michigan reformed its auto insurance laws, ending the requirement that all drivers carry unlimited PIP coverage. Following the change, the MCCA—under guidance from Governor Gretchen Whitmer—issued $400 rebate checks to drivers, using what was described at the time as surplus funds.

Advocates for crash survivors have criticized both the policy change and the rebates, arguing they contributed to the fund’s deficit and made it harder for injured individuals to access care. They say claim denials and payment delays are more frequent, and that the system no longer prioritizes those who need lifelong treatment.

Maureen Howell, a member of the advocacy group We Can’t Wait, said the MCCA’s structure leaves out the voices of those most affected. “No one on the board understands the survivors’ perspective—it’s made up entirely of insurance company representatives,” Howell said.

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In response, the MCCA maintains it is fulfilling its mission. In a press release issued Monday, the group said it is nearing $25 billion in total payments since its creation in 1978. Bezy also noted that payments in certain categories have increased since the 2021 reforms.

Still, challenges remain. At the end of 2023, 15,388 claims were still open. Advocates warn that even drivers with unlimited policies may not be receiving unlimited care. That’s because reimbursement rate cuts have forced many care providers to shut down, limiting treatment options for survivors.

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