MCCA Announces New Fee Increase

The Michigan Catastrophic Claims Association Fund issued a press release explaining their latest fee increase for Personal Injury Protection medical claims.

According to the MCCA website, the MCCA is a nonprofit association that reimburses no-fault auto insurance companies for medical claims that supersedes a PIP policy amount.

As far as the amount is concerned, the MCCA site mentions this: “Currently that amount is $555,000. That means that the insurance company pays the entire claim, but is reimbursed by the MCCA for medical costs over $555,000.”

Starting July 1, 2019 through June 30, 2020, the MCCA will now charge no-fault auto insurance companies $222 per vehicle that is covered under a PIP policy.

As of right now, the MCCA is currently charging no-fault insurance companies $192 per vehicle.

According to the MCCA’s press release, “PIP coverage is mandatory and provides for the payment of unlimited, lifetime medical benefits. The cost of these benefits is reflected in the auto insurance premiums all Michigan policyholders pay.”

You will not be required to pay $222. This is a cost that we will have to pay, but it will likely affect your premium amount.

If you notice a slight increase in your no-fault policy, this will likely be the cause.

Feel free to contact us with any concerns or questions you may have regarding this new fee increase.