When July 1st rolls around we’ll all be focusing on our 4th of July preparation, wondering how hot the weather might get, or trying to get away for a great summer vacation. Unfortunately, something less desirable will be happening on July 1st. Everyone’s auto insurance will become even more expensive as the Michigan Catastrophic Claims Association (MCCA) fee will rise from $170 to $192 per year and per car. This hike is yet another hit every Michigan resident’s wallet.

Why Michigan’s auto no-fault insurance system is so expensive is a very complex question, but two of the primary problems are the one-sized-fits-all government mandated coverage level, and the complete lack of transparency on how the MCCA fee is determined.

Michigan is the only state in the union requiring everyone carry unlimited medical coverage with their auto insurance plan. On principle, I oppose government mandates. Despite the words from those who benefit from the status quo, the rest of the country does not look to Michigan’s system as an good example of insurance coverage. We need to reform our system, and I am open to discussing any and all ideas to lower costs for every citizen in Michigan. Doing nothing, which Lansing has done about auto insurance, is not acceptable and anyone who wants to represent the citizens of Michigan should have the same level of openness to reform.

The MCCA is required to put out a financial report every year. This document is about 200 pages long, but I went through it. It has a long list about where the $20 billion is invested, and frankly, it is invested well in safe stocks, bonds, mutual funds, etc. However, there is no breakdown about where or why they have the $22 billion in liabilities. We need to know both sides of the ledger to determine how we need to proceed in reforming this system. Are they overpaying for care? Do they think people will live a longer life than normal? Do they believe costs will raise at a fast pace? These questions need answers and, since this is our money, we deserve answers.

I hope to be the person who fights to get you the answers to these questions as your next State Representative. We have many large issues to tackle, and I am ready to do so from day one!

Scott Czasak
Candidate for 36th District State Representative

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