Accident survivors are expressing dismay at news Michigan auto owners will receive $400 refund checks. The checks will use surplus money from a fund meant to pay for their treatment.
Anita Fox is director of the Michigan Department of Insurance and Financial Services. She said the surplus is due to changes in Michigan's auto insurance law. The Michigan Catastrophic Claims Association runs the fund.
“The MCCA determined they could safely return $3 billion while still leaving enough of a cushion on top of the excess of $20 billion that remains in that fund in addition to pay for the future medical costs for accident victims.”
Fox said her agency is committed to making sure survivors don't lose care as a result of the refund.
Survivor Braxton Wood said it hurts his feelings that the refund checks are going to auto owners using funds he says should be helping pay for his recovery.
“It’s just not fair whatsoever that people think that they need $400 versus me having someone take me to and from therapy in order to do that. And if I can’t go to therapy—every day that I don’t—it gets worse.”
Nick Long is an accident survivor, and he runs a care providing company.
“You’re stealing that way from somebody that’s a quadriplegic in their home that needs care. And because of—they haven’t fixed this law, there’s a surplus of money. Well that money belongs to someone else.”
Long said it could make it harder for lawmakers to change the law.
The new no-fault law made big cuts to the amount providers are reimbursed for care, and survivors are losing care as a result.
