Is Michigan's Catastrophic Claims Mandate the problem?
Start with a sense of agreement that our GOP controlled legislature has with the new leader of the smurfs.
Insurance costs too much. And since Lansing is already aglow in the possibility of adding more taxes on top of the 40% increase in plate fees and added gas taxes, we need a break right?
Who better to underwrite such ‘breaks’ than insurance carriers, right? Government always finds ways to shunt higher costs on to taxpayers OR those in an industry that they have manipulated for so many years. So what is the message when we see this?
After Gov. Gretchen Whitmer’s State of the State address on Tuesday, state Rep. Michele Hoitenga, R-Manton, said that insurance reform will be one of the GOP’s top priorities this session. Speaker of the House Lee Chatfield, R-Levering, established a separate committee to devise a way past obstacles to bringing down rates.
In a tweet, Chatfield said citizens need a bipartisan solution.
“It’s time we cut through politics and deliver real reform to our rigged car insurance system,” Chatfield’s tweet says. “Families and seniors are paying too much, and they deserve relief. I’ve created a special committee to reform car insurance and have asked [Rep. Jason] Wentworth to chair it. Let’s get it done!”
We deserve relief.
Whew! Glad we got that settled. So let me make it real easy.
First start off with that part of the process that enjoys a failing google grade. It adds $hundreds a year to each vehicle we own, and holds onto $20,000,000,000.00 of Michigan ratepayers money. Yeah, that’s $20 Billion.
Its a tax. Don’t forget that.
And actually.. just start and end with that and then watch for a while.
The MCCA has always been a problem.
When you don't open your books, hide your methodology for setting the rate and from what little you can discern from their financials their pitiful rate of return on their investments, the results from this entry-level experiment in socialism should be patently obvious.
It's not that the political will has not been there to tackle this problem, but people you think should be on your side who are either on the take or chuck their principles (cough, cough, Lana Theis & Brooks Patterson) don't help matters very much.
All it takes for the insurance industry is just a little coin to buy enough legislators to kibosh any relief during this session of the legislature.
And to think that just a few years ago the MCCA was only $18,000,000,000.00
Ps. don't forget the shyster lobby doesn't want no-fault changed, either.