Press Conference: Key Public Officials Say NO to Auto No-Fault Reform Monday, 10 March 2014

Oakland County Executive L. Brooks Patterson presents a unified opposition against Michigan Auto No-Fault reform; calling the proposed legislation, "A pro-insurance industry, anti-victim piece of legislation".

In his comments, Mr. Patterson says that the 17 billion dollar fund, which was created by drivers and is used for caring for victims of catastrophic auto accidents, is sustainable and growing.

He articulates specific problems with the proposed legislation and suggests that it was written only in the interest of insurance companies.

Some of those problems with the proposed legislation are:

  • There is a cap in the amount of coverage allowed - which will still leave victims paying for care
  • It limits the amount of time a family member can serve as a paid caregiver
  • It only provides 52 weeks of physical therapy 
  • Passengers aren't covered
  • There's a new tax introduced to cover the costs that this plan will have on Medicaid
  • The discount on premiums that is offered will expire; after which insurance companies are allowed to raise rates back to (or above) previous levels
The rationale for this “reform”, as Patterson calls it, is based on calculations that the Michigan Catastrophic Claims Association refuses to make public. Mr. Patterson describes an “inaccessible” scheme of bank accounts, some of which are held off-shore. Without transparency, voters and law makers cannot fully understand how the MCAA is operating the fund and what calculations are supporting their constant rate hikes and need for new laws.

Mr. Patterson, Wayne Co. Executive Robert Ficano, Macomb Co. Executive Mark Hackel and Thomas Stallworth III, who represents the Detroit caucus, all shared their views and personal experiences related to the tragedy and expense of catastrophic auto accidents.  The group urged the public to oppose any legislation aimed at changing the current laws.