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Consumers’ Guide

No-Fault reform will increase taxpayers’ Medicaid and Medicare burdens

No-Fault reform will cause the Medicaid and Medicare burdens on taxpayers to increase as the catastrophic claim costs (currently covered by the Michigan Catastrophic Claims Association) are shifted onto Medicaid and Medicare for auto accident victims who do not have private health insurance.

For example, consider what would have happened under the $1 million-plus cap on No-Fault benefits that was part of the unsuccessful No-Fault reform proposal in House Bill 4612 in 2013.

For victims who were not covered by private health insurance, when their catastrophic claim costs exceeded HB 4612’s No-Fault cap, they would have had to turn to – and rely on – Medicaid or Medicare to cover the expenses for the medical benefits they would need for the rest of their lives.

Medicaid and Medicare are funded by Michigan taxpayers.

Michigan has a new auto No-Fault law. Click Here to learn more.