Nesbitt praises MCCA assessment decrease

Nesbitt praises MCCA assessment decrease

LANSING, Mich. — State Sen. Aric Nesbitt on Wednesday announced to residents that the Michigan Catastrophic Claims Association (MCCA) will be lowering the per vehicle assessment for the period of July 2, 2020 through June 30, 2021 to $100.

“This is fantastic news for Michigan drivers and families,” said Nesbitt, R-Lawton. “The reforms approved earlier this year were specifically aimed at reducing costs and giving options to Michigan drivers. Today’s announcement will surely bring a breath of relief to many families across the state.”

The decrease announced Wednesday is a 55% reduction from this year’s $220 assessment. Insurance companies will charge the $100 assessment only to people who choose to maintain unlimited lifetime personal injury protection (PIP) benefits. Those who choose other levels of coverage under the new reforms will see even lower fees or possibly avoid the assessment altogether, as long as the MCCA is not in a deficit position.

According to the MCCA, this reduction is a direct result of savings created by cost controls for medical treatment and other changes made to Michigan’s no-fault insurance law earlier this year.

Starting July 1 of next year, drivers will be able to choose from a variety of coverage options to fit their budgets. These choices range from unlimited lifetime medical benefits to a complete opt out for people with Medicare or private health insurance.

“I introduced Senate Bill 1 in January with the goal of providing Michigan drivers with some true, meaningful relief,” Nesbitt said. “These reforms were a long time coming — people across the state were being priced out of driving and having their livelihoods drastically impacted. I am happy that my colleagues and I were able to come together for the people of Michigan.”

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