The document discusses proposed legislation (HB4936) that would abolish Michigan's auto no-fault insurance system. It argues the system works well, with $13.8 billion in assets and a 17:1 equity to expense ratio. However, the insurance industry claims the system is unsustainable and wants to cap benefits and shift costs to Medicaid. The document urges contacting state representatives to oppose the bill and protect lifetime medical benefits for car accident victims paid for by the existing no-fault system.

1. The Truth About Your Auto No-Fault What You Don’t Know Will Hurt You

2. What’s going down Your representative in the Michigan Congress is about to vote on a bill (HB4936) that affects everyone in the State of Michigan. It affects you and your family. This Bill will essentially abolish the Michigan auto no-fault system and put you, your family and friends at serious risk. The House Insurance Committee has constructed a bill that has stripped you of all of your voting rights on this issue. In the past, Michigan residents have voted against this as a proposal on the ballot. This time you are not going to have the chance to vote, because your representative said that you voted for them to make these decisions for you. I don’t know about you, but I don’t remember my Representative telling me that they were going to dismantle our auto no-fault system, during their election campaign. Remember, back when your opinion mattered.

3. Your Biggest Fear I think most of us would agree that the biggest risk that we take in our everyday lives, is when we are driving in our automobiles. Think about it, when throughout your day are you and your family members really taking the most risk of suffering a serious, sometimes catastrophic injury? The residents of Michigan are the smartest people in the United States when it comes to dealing with this. Now our biggest fear, is that we’re going to lose our protection, the Michigan Auto No-fault System.

4. Why is Michigan the only one? I wish I could tell you how many times I have heard, “Well, they’re not doing it like that in the other 49 states, so why should it be like that in Michigan.” I’m sorry but only one can be the leader and the rest will follow. Our auto no-fault system is known as the best in the country, by far.

5. Michigan MCCA History The Michigan Catastrophic Claims Association (MCCA), a private non-profit unincorporated association, was created by the state Legislature in 1973. Michigan residents took it upon themselves to create a self-sustaining system that would protect and take care of them every time they got into an automobile, taking the biggest risks of their daily lives. Every year, when you pay your auto insurance, you pay for MCCA benefits known as PIP benefits.

6. PIP Benefits What are PIP benefits and what do they provide for me? Personal Injury Protection benefits provide you with benefits for accidental bodily injury arising out of the ownership, operation, maintenance or use of a motor vehicle, and PIP benefits protect you from being sued as the result of an auto accident.

7. Main Benefits of PIP 1. Personal injury protection benefits will pay for all reasonably necessary costs for your care, recovery, and rehabilitation expenses resulting from injuries sustained by an automobile accident . 2. The no-fault law protects Michigan drivers from being sued as the result of an auto accident. Without protection, either one of these two situations could potentially bankrupt your family for generations.

8. Michigan Catastrophic Claims Association Currently residents pay $145 annually to the MCCA for PIP benefits on each auto insurance policy that they purchase for a vehicle registered in the State of Michigan. This means that Michigan residents have found a way to cover the biggest risk they take in their daily lives for about $20 a month. Sounds like a good deal to me, I know that I pay almost $10/month for insurance on my cell phone.

9. It’s Your Money The Michigan Catastrophic Claims Association currently has approximately $13.8 Billion of your money in assets, consisting mainly of stocks and bonds. Where did the $13.8 Billion come from? You, your Mother, Father, Grandmother, Grandfather, Aunts, Uncle’s and your kids. Anyone that has paid car insurance in Michigan in the last 38 years.

10. Let’s do the math 2010 8.1 million registered vehicles according to the Michigan DMV in 2010. Take away the 15% uninsured vehicles, and that leaves approximately 7million vehicle policies paid PIP benefits of $145/vehicle. 7,000,000 X $145 = $1,015,000,000 MCCA took in approximately $1.015 Billion in MI resident policy revenue alone in 2010.

11. Still doing the math Take the 1.015 Billion collected on Michigan residents auto Pip benefits in 2010. Then the MCCA paid out approximately $800 million in claims for catastrophically injured auto accident patients, in 2010. This means that the MCCA took in $200 million more than it paid out in claims, in just insurance policy revenue alone in 2010. Remember, we still have 13.8 Billion in assets that should collect interest income annually.

12. Michigan’s Got It Right Essentially, what this means is that the Michigan residents have found a way to cover the biggest risk that they take in their daily lives for approximately $20 a month. In the process, we have created a safety fund that has $13.8 billion, has increased its assets every year rising by over $200 million in 2010, and has only had to pay out $8 billion in total claims since 1973. I think the residents of Michigan are a little smarter than people think.

13. Where is the savings? According to current statistics Michigan’s average auto insurance policy has increased to nearly $2,541 a year. Only $145 of your policy premium pays for your PIP benefits. How much could you potentially gain by giving up your Pip benefits, when they only account for less than 6% of your premium??? Why is the rest of your policy costing you so much???

14. Same old story The insurance industry wants you to believe that our system is unsustainable according to their statistics. It just doesn’t have enough money. This isn’t the first time that we have heard this story from the insurance industry. In 1992, their experts had statistics that said our system was unsustainable and they needed to cap your benefits. This appeared on the 1992 ballot as Proposal D and was defeated by the Michigan voters.

15. Here we go again Then again in 1993, those same experts said the system was unsustainable and couldn’t continue to survive at the pace of the growth of the claims. Proposal C on the November 1994 ballot wanted to cap your benefits and impose a fee schedule. Voters again rejected the proposal.

16. Oops, our mistake Then in 1998, Insurers realized that their projections and figures were wrong, and there was actually too much money in the MCCA fund. At this time there was approximately $2.5 billion in assets and approximately $200 million in claims. A 12 to 1, equity to expense ratio. On June 30, 1998, after the passage of the refund legislation, the MCCA proceeded with a $1.2 billion refund. Refunding half of the total assets.

17. Here We Are Today Now, let’s fast forward to today. Here we are again listening to the same type of experts, from the insurance industry, telling us that our fund is in trouble. It’s simply unsustainable and they need to cap your benefits and impose fee schedules. Again, the numbers just are not adding up. The growth of the amount of the claims has slowed in growth this decade from the previous decade, and we have a better equity to expense ratio, than when the refund was issued in 1998.

18. MCCA Stability From 1984 to 1994 the amount of the claims grew by approximately a 1000% increase. From 2000 to 2010 the amount of the claims have grown by less than a 300% increase. In 1998 when everyone agreed the fund had too much money, $2.5 billion assets with $200 million claims, an equity to expense ratio 12 to 1. A refund was issued. Now in 2010, the fund has $13.8 billion assets with $800 million claims, an equity to expense ratio of 17 to 1. Now, they are saying that the fund is insolvent??? It just doesn’t add up.

19. What’s not in their projections? A couple reasons why their numbers may not be adding up is because their projections probably aren’t taking into account the patients that rehabilitate or the mortality rate of other patients. Our system has been designed to give you the best possible chance to rehabilitate and get integrated back into society, should you or one of your family members get seriously injured in a car accident.

20. What’s not in their projections? They say that, 1% of the people injured, spend approximately 30% of the money. But these people have the most serious injuries, and have many costly bills. Many times they are hospitalized for most of the first 3 years of injury. And then many are lucky to survive only a couple of years after leaving the hospital and rehabilitation. As some of these patients become stabilized, through establishing a plan of care and moving back into their homes, many times the amount of their medical bills will begin going down over time.

21. The automobile industry contribution One other thing that we don’t see in their predictions, is that the auto industry has made great strides in making travel safer for us since 1973. Adding multiple airbags in vehicles is just one example. In fact, according to the Michigan State Police, in the last decade from 2000 to 2010 auto accidents in the State of Michigan have fallen by 31.5%.

22. What’s their solution Put a cap on the amount of medical benefits you can receive from the MCCA. Eventually shifting all of the existing and new patients medical expenses from the MCCA to the Medicaid system. Impose a fee schedule similar to Workman Compensation, on medical providers, cutting their reimbursement from the MCCA by as much as 30% to 40%. Eliminate the Michigan auto no-fault system as you know it. Exposing you to potential lawsuits from other drivers and capping your benefits.

23. Putting a cap on your benefits Currently Michigan residents that are catastrophically injured in automobile accidents will receive lifetime benefits for their care, recovery and rehabilitation expenses. MCCA PIP benefits will cover you and your family while traveling in your automobile. If one of your children were to be catastrophically injured in a car accident, right now you have the comfort of knowing that their medical expenses would be covered for the rest of their life, or for as long as they require care for their accident related injuries. Putting a cap on your benefits means that once your medical expenses reach a certain dollar amount, you will then be forced onto the Medicaid or welfare system.

24. Their Michigan Medicaid solution According to the governors Michigan Medicaid Budget for FY 2011, the Michigan Medicaid system has a projected shortfall of $1.5 billion. Does it sound fiscally smart to take patients out of a system that has $13.8 billion in the bank and at least $200 million positive revenue this year, and place them into a system that has a $1.5 billion shortfall?? Also, the current Medicaid system isn’t designed to handle the auto no-fault patients. A lot of the services that auto no-fault patients receive, are not currently covered by Medicaid. How much is it going to cost Medicaid to make these changes, and manage the new patients cases?? Today, the Medicaid system cannot afford this. And now is not the time to add costs to Michigan Medicaid, regardless of what people think future projections might be.

25. Their fee schedule solution Probably one of the worst decisions that the state of Michigan could make right now would be to cut revenue to the healthcare industry. Costing many Michigan residents good paying jobs. Michigan is currently ranked 49th with an unemployment rate of 11.2%. Growing by a healthy 25%, the health-care industry is one of the only major industry sectors to post job gains in the last decade. Using the Workman Compensation fee schedule isn’t going to work because catastrophically injured patients require more specialized care than most workman compensation patients, due to the severity of their injuries. With all of the employment problems in Michigan, now is not the time to make an unnecessary revenue cut to the healthcare industry from the MCCA.

26. The choice is clear As a resident of the State of the Michigan, I don’t think changing our no-fault system is a good idea. What are the potential gains? There isn’t one guaranteed in the Bill. What do we stand to lose? A lifetime of benefits accumulated by our current and past family members and friends, to be there should one of their loved ones get injured in a car accident. Immunity in exchange for exposure to lawsuits as a result of a car accident. Forcing you to now buy additional liability insurance with each auto policy.

27. Don’t just sit there If we allow this legislation to pass, then this is just another example of the Michigan residents allowing our state government to stand on the side of big corporations and big money, and against the hard working family people. It is unconstitutional to construct a Bill that does not to allow the Michigan citizens the opportunity to move forward with a referendum, to vote on legislation that affects every single Michigan resident.

28. Take Action Today!! If you want the House of Representatives to leave our auto no-fault system alone, then you need to act now. This is not the time to wait and see what everybody else does. Michigan needs to continue to set the example for how to deal with the risks associated with automobile travel. Begin contacting all of the representatives in the Michigan House and tell them to leave our auto no-fault system alone and vote No on House Bill 4936.

29. MI House Of Representatives Contact List Look for your representative and contact them Bledsoe, Timothy (D) Grosse Pointe, MI 517-373-0154 TimBledsoe@house.mi.gov Howze, Lisa (D) Detroit 517-373-0106 LisaHowze@house.mi.gov Talabi, Alberta (D) Detroit 517-373-1776 AlbertaTalabi@house.mi.gov Stapleton, Maureen (D) Detroit 517-373-1008 MaureenStapleton@house.mi.gov Olumba, John (D) Detroit 517-373-0144 JohnOlumba@house.mi.gov Durhal Jr., Frederick (D) Detroit 517-373-0844 FredDurhal@house.mi.gov Womack, James (D) Detroit 517-373-0589 JimmyWomack@house.mi.gov Stallworth III, Thomas (D) Detroit 517-373-2276 ThomasStallworth@house.mi.gov Jackson, Shanelle (D) Detroit 517-373-1705 shanellejackson@house.mi.gov Santana, Harvey (D) Detroit 517-373-6990 HarveySantana@house.mi.gov Nathan, David (D) Detroit 517-373-3815 DavidNathan@house.mi.gov Tlaib, Rashida (D) Detroit 517-373-0823 RashidaTlaib@house.mi.gov Kandrevas, Andrew (D) Southgate 517-373-0845 AndrewKandrevas@house.mi.gov

30. MI House of RepresentativesContact List Clemente, Paul (D) Lincoln Park 517-373-0140 PaulClemente@house.mi.gov Darany, George (D) Dearborn 517-373-0847 GeorgeTDarany@house.mi.gov Constan, Bob (D) Garden City 517-373-0849 bobconstan@house.mi.gov Cavanagh, Phil (D) Redford 517-373-0857 PhilCavanagh@house.mi.gov LeBlanc, Richard (D) Westland 517-373-2576 richardleblanc@house.mi.gov Walsh, John (R) Livonia 517-373-3920 JohnWalsh@house.mi.gov Heise, Kurt (R) Plymouth 517-373-3816 KurtHeise@house.mi.gov Slavens, Dian (D) Canton 517-373-2575 DianSlavens@house.mi.gov Geiss, Douglas (D) Taylor 517-373-0852 DouglasGeiss@house.mi.gov Somerville, Pat (R) New Boston 517-373-0855 PatSomerville@house.mi.gov Forlini, Anthony (R) Harrison Township 517-373-0113AnthonyForlini@house.mi.gov Switalski, Jon (D) Warren 517-373-1772JonSwitalski@house.mi.gov Townsend, Jim (D) Royal Oak 517-373-3818 JimTownsend@house.mi.gov Lipton, Ellen (D) Huntington Woods 517-373-0478 EllenLipton@house.mi.gov Liss, Lesia (D) Warren 517-373-2275 LesiaLiss@house.mi.gov

31. MI House of RepresentativesContact List Farrington, Jeff (R) Utica 517-373-7768 JeffFarrington@house.mi.gov Lane, Marilyn (D) Fraser 517-373-0159 MarilynLane@house.mi.gov LaFontaine, Andrea (R) Richmond 517-373-8931 AndreaLaFontaine@house.mi.gov Goike, Ken (R) Ray 517-373-0820 KenGoike@house.mi.gov Stanley, Woodrow (D) Flint 517-373-8808 WoodrowStanley@house.mi.gov Hobbs, Rudy (D) Southfield 517-373-1788 RudyHobbs@house.mi.gov Lund, Peter (R) Shelby Township 517-373-0843 PeteLund@house.mi.gov Barnett, Vicki (D) Farmington Hills 517-373-1793 VickiBarnett@house.mi.gov Crawford, Hugh (R) Novi 517-373-0827 HughCrawford@house.mi.gov Brown, Lisa (D) West Bloomfield 517-373-1799 LisaBrown@house.mi.gov Moss, Charles(R) Birmingham 517-373-8670 ChuckMoss@house.mi.gov Knollenberg, Martin (R) Troy 517-373-1783 MartyKnollenberg@house.mi.gov Haugh, Harold (D) Roseville 517-373-0854 HaroldHaugh@house.mi.gov Haines, Gail (R) Waterford 517-373-0615 GailHaines@house.mi.gov Kowall, Eileen (R) White Lake 517-373-2616 EileenKowall@house.mi.gov

32. MI House of RepresentativesContact List McMillin, Tom (R) Rochester Hills 517-373-1773 TomMcMillin@house.mi.gov Jacobsen, Bradford (R) Oxford 517-373-1798 BradJacobsen@house.mi.gov Denby, Cynthia (R) Handy Township 517-373-8835 CindyDenby@house.mi.gov Hammel, Richard (D) Mt. Morris Township 517-373-7557 richardhammel@house.mi.gov Ananich, Jim (D) Flint 517-373-7515 JimAnanich@house.mi.gov Smiley, Charles (D) Burton 517-373-3906 CharlesSmiley@house.mi.gov Scott, Paul (R) Grand Blanc 517-373-1780 PaulScott@house.mi.gov Ouimet, Mark (R) Scio Township 517-373-0828 MarkOuimet@house.mi.gov Irwin, Jeff (D) Ann Arbor 517-373-2577 JeffIrwin@house.mi.gov Rutledge, David (D) Ypsilanti 517-373-1771 DavidRutledge@house.mi.gov Olson, Rick (R) Saline 517-373-1792 RickOlson@house.mi.gov Zorn, Dale (R) Ida 517-373-2617 DaleWZorn@house.mi.gov Jenkins, Nancy (R) Clayton 517-373-1706 NancyJenkins@house.mi.gov Kurtz, Kenneth (R) Coldwater 517-373-1794 KennethKurtz@house.mi.gov Lori, Matthew(R) Constantine 517-373-0832 MattLori@house.mi.gov

33. MI House of RepresentativesContact List McCann, Sean (D) Kalamazoo 517-373-1785 SeanMcCann@house.mi.gov O'Brien, Margaret (R) Portage 517-373-1774 MargaretOBrien@house.mi.gov Segal, Kate (D) Battle Creek 517-373-0555 KateSegal@house.mi.gov Bolger, Jase (R) Marshall 517-373-1787 JaseBolger@house.mi.gov Poleski, Earl (R) Jackson 517-373-1795 EarlPoleski@house.mi.gov Shirkey, Michael (R) Clarklake 517-373-1775 MikeShirkey@house.mi.gov Rogers, William (R) Brighton 517-373-1784 BillRogers@house.mi.gov Byrum, Barb (D) Onondaga 517-373-0587 barbbyrum@house.mi.gov Bauer, Joan (D) Lansing 517-373-0826 joanbauer@house.mi.gov Meadows, Mark (D) East Lansing 517-373-1786 markmeadows@house.mi.gov Outman, Rick (R) Six Lakes 517-373-0834 RickOutman@house.mi.gov Shaughnessy, Deb (R) Charlotte 517-373-0853 DebShaughnessy@house.mi.gov Yonker, Ken (R) Caledonia 517-373-0840 KenYonker@house.mi.gov MacGregor, Peter (R) Rockford 517-373-0218 PeterMacGregor@house.mi.gov Agema, David (R) Granville 517-373-8900 daveagema@house.mi.gov

34. MI House of RepresentativesContact List Dillon, Brandon (D) Grand Rapids 517-373-2668 BrandonDillon@house.mi.gov Schmidt, Roy (D) Grand Rapids 517-373-0822 RoySchmidt@house.mi.gov Hooker, Thomas (R) Byron Center 517-373-2277 ThomasHooker@house.mi.gov Tyler, Sharon (R) Niles 517-373-1796 SharonTyler@house.mi.gov Pscholka, Al (R) Stevensville 517-373-1403 AlPscholka@house.mi.gov Nesbitt, Aric (R) Lawton 517-373-0839 AricNesbitt@house.mi.gov Gilbert II, Judson (R) Algonac 517-373-1790 JudGilbert@house.mi.gov Daley, Kevin (R) Lum 517-373-1800 KevinDaley@house.mi.gov Muxlow, Paul (R) Brown city 517-373-0835 PaulMuxlow@house.mi.gov Damrow, Kurt (R) Port Austin 517-373-0476 KurtDamrow@house.mi.gov Glardon, Ben (R) Owosso 517-373-0841 BenGlardon@house.mi.gov Lyons, Lisa (R) Alto 517-373-0846 LisaLyons@house.mi.gov Callton, Mike (R) Nashville 517-373-0842 MikeCallton@house.mi.gov Genetski II, Robert (R) Saugatuck517-373-0836 BobGenetski@house.mi.gov Price, Amanda (R) Park Township 517-373-0838 AmandaPrice@house.mi.gov

35. MI House of RepresentativesContact List Haveman, Joseph (R) Holland 517-373-0830 JosephHaveman@house.mi.gov Hughes, Holly (R) Montague 517-373-3436 HollyHughes@house.mi.gov Hovey-Wright, Marcia (D) Muskegon 517-373-2646 MarciaHoveyWright@house.mi.gov Opsommer, Paul (R) Dewitt 517-373-1778 paulopsommer@house.mi.gov Horn, Kenneth (R) Frankenmuth 517-373-0837 kennethhorn@house.mi.gov Oakes, Stacy (D) Saginaw 517-373-0152 StacyErwinOakes@house.mi.gov Brunner, Charles(D) Bay City 517-373-0158 CharlesBrunner@house.mi.gov Johnson, Joel (R) Clare 517-373-8962 JoelJohnson@house.mi.gov Stamas, Jim (R) Midland 517-373-1791 JimStamas@house.mi.gov Cotter, Kevin (R) Mount Pleasant 517-373-1789 KevinCotter@house.mi.gov Bumstead, Jon (R) Newaygo 517-373-7317 JonBumstead@house.mi.gov Franz, Ray (R) Onekama 517-373-0825 RayFranz@house.mi.gov Potvin, Phil (R) Cadillac 517-373-1747 PhilPotvin@house.mi.gov Rendon, Bruce (R) Lake City 517-373-3817 BruceRendon@house.mi.gov Schmidt, Wayne (R) Traverse City 517-373-1766 WayneSchmidt@house.mi.gov

36. MI House of RepresentativesContact List MacMaster, Greg (R) kewadin 517-373-0829 GregMacMaster@house.mi.gov Pettalia, Peter (R) Presque Isle 517-373-0833 PeterPettalia@house.mi.gov Foster, Frank (R) Pellston 517-373-2629 FrankFoster@house.mi.gov McBroom, Ed (R) Vulcan 517-373-0156 EdMcBroom@house.mi.gov Lindberg, Steven (D) Marquette 517-373-0498 stevenlindberg@house.mi.gov Huuki, Matt (R) Atlantic Mine 517-373-0850 MattHuuki@house.mi.gov