LANSING – State Representative Henry Yanez (D-Sterling Heights) has introduced a bill calling for transparency within the Michigan Catastrophic Claims Association. House Bill 4386 includes calling for the MCCA to open its books and its meetings to the public and explain how the annual MCCA fee drivers must pay as part of their insurance policy is determined.

“The MCCA has operated in secrecy since it began, and it’s time that vehicle owners who are required to buy no-fault insurance find out just how this association operates,” said Yanez. “They apparently are sitting on upwards of $17 billion in reserves, and yet ratepayers have no clear idea of how they come up with the fee we have to pay as part of our policies every year.”

The MCCA is funded by the public’s money, yet rates are set in secret behind closed doors. Members of the MCCA are comprised of representatives from the state’s largest insurance companies. Currently, drivers are paying an MCCA fee of $186 per car. That fee is scheduled to drop to $150 per car in July. The MCCA reimburses insurance companies for money spent on medical claims above $530,000 for individuals suffering catastrophic injuries in auto accidents.

“Even in the proposals to change auto no-fault insurance that are now before the House, the MCCA is allowed to operate as they always have,” said Yanez. “This organization is sitting on a lot of taxpayer money. We deserve to know more about how they are making financial decisions for this fund. I hope my colleagues will approve my bill so we can get a look at the MCCA’s books and better understand their operations.”