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No Fault reform will increase taxpayers’ medicaid and medicare burdens

The Medicaid and Medicare burdens on taxpayers will increase as the catastrophic claim costs that were previously covered by the Michigan Catastrophic Claims Association will now be covered by Medicaid and Medicare for auto accident victims who do not have private health insurance.

For victims who are not covered by private health insurance, when their catastrophic claim costs exceed HB 4612’s proposed $1 million cap on No Fault medical expenses, then they will have to turn to Medicaid or Medicare to cover their $1 million-plus, unlimited, lifetime No Fault medical benefits.

Medicaid and Medicare are funded by Michigan taxpayers.

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