MCCA Fee to Drop Below $100 for First Time Ever

Beginning July 2021, the Michigan Catastrophic Claims Association (MCCA) fee will drop below $100 for the first time in nearly 20 years. Their fee for the July 1, 2021 – June 30, 2022 period is dropping down to $86 per vehicle.

This is the second consecutive year for decreases in the fee. For the 2020-2021 year, it was $100 per vehicle.

The MCCA fee applies only to vehicles that have Unlimited Personal Injury Protection (PIP). Due to the changes in Michigan’s No-Fault Law in 2020, people have the option to select PIP limits other than Unlimited. For FAQs about the Michigan’s No-Fault Law, check out our blog here.

Those other options are: $500,000; $250,000; $50,000 with Medicaid; or opting out with a qualified health plan or Medicare with Parts A & B. For those who select a lower option, the MCCA fee does not apply.

Vehicle owners who are eligible to opt-out of all medical benefits from their auto insurance policy are also exempt from the MCCA fee.

If you’re a commercial client for Michigan Insurance Company, you should be aware of their upcoming changes.

Michigan Insurance Company is updating their CLM Division One Commercial Auto Program.

Michigan Insurance Company has updated the MCCA charge from $100 to $86 per vehicle in response to the November 2020 Michigan Catastrophic Claims Association Assessment Bulletin.

This change will be effective July 1, 2021. Michigan Insurance Company will also be revising Michigan Personal Injury Protection endorsement CAD 22 20 to add Attendant Care under the Limit of Insurance provision. This will be effective July 2, 2021.

If you’d like a copy of the form, you can view it here.