Lucido says MCCA fee increase ‘outrageous,’ calls for transparency

LANSING, Mich. — State Sen. Peter J. Lucido said the announcement on Wednesday by the Michigan Catastrophic Claims Association (MCCA) of a nearly 15 percent increase in its assessment is “outrageous” and pointed to the need for transparency.

The MCCA announced on Wednesday that its assessment on auto insurance companies will increase by $28 on July 1 from $192 to $220. The increase will ultimately be passed on to drivers in the form of higher rates.

“This is outrageous. The Michigan Catastrophic Claims Association is raising rates again with no explanation as to why rates need to be increased,” said Lucido, R-Shelby Township. “I have legislation that focuses on transparency and the MCCA racket. Yes, it’s a racket. They can raise prices whenever they want, and they never justify a darn thing.

“It’s an absolute farce, and Michiganders are getting ripped off once again.”

In January, Lucido introduced Senate Bill 4, which would require the disclosure of the actuarial computation used to set rates within the MCCA.

“The Michigan Public Service Commission provides oversight to help keep our electric, gas and utility rates from climbing too high, too fast — yet the MCCA gets a free ride with no oversight whatsoever,” Lucido said. “We need full transparency on the MCCA; we need an oversight committee to watch over this fund and its operators; and we need to use some of the interest only to fix our roads — thus reducing auto accidents and catastrophic auto-related injuries.”