Peter A. Kuhnmuench: Catastrophic claims info is readily available

A recent editorial ("Shed light on process") points out the need to clear up misconceptions about the role of the Michigan Catastrophic Claims Association (MCCA) in our state's auto insurance system. It is true that Michigan's no-fault insurance law mandates the highest level of medical benefits in the country. Michigan's no-fault law provides unlimited, lifetime benefits for all reasonable and necessary medical treatment for auto accident-related injuries. Most people may not realize the benefit of that coverage and it bears repeating - there is no cap for medical benefits for those injured in an auto accident.

That means if someone you know is catastrophically injured in an auto accident and needs lifetime care, it is covered with help from the mechanism we know as the MCCA. Insurance is the sharing of risk. We all pay premiums to cover the costs of not only our claims, but others who also pay into the system. The same is true of the MCCA. The MCCA covers the cost of these catastrophic claims and then assesses all auto insurance companies in the state to help pay for them. Insurance companies do pass these costs onto auto insurance policyholders.
Contrary to the contention of the Battle Creek Enquirer editorial, however, there is nothing "hidden" about the process by which the MCCA determines its annual assessments. The law requires that the MCCA assess an amount that is sufficient to cover the lifetime claims of all persons catastrophically injured in that year. During the period of July 1, 2010, through June 30, 2011, it is estimated that 1,200 individuals will be catastrophically injured in auto accidents. The MCCA board makes the assessment determination based on reports prepared by two independent actuarial firms which estimate the costs of those catastrophic injuries.
The allegation that the public doesn't have the ability to see and hear how and why these decisions are made is inaccurate. In fact, the governor's own-appointed insurance commissioner is a member of the MCCA Board of Directors. While no one would advocate for the disclosure of the personal information associated with individual claims that may be discussed at a meeting, the financial aspects of those meetings are not only appropriate for public discourse, but largely disclosed on the commissioner's own Web site.