MCCA stands for Michigan Catastrophic Claims Association. This is a fund of money that all drivers contribute to every year, and it’s on your insurance bill. This is a very large fund ─ over $21 billion ─ that insurance companies turn to when they have paid a certain amount. Once the insurance company has paid the amount required under our current system, then the MCCA begins to cover and pay for the expenses after that. So it is a very large fund of money for those very large claims, and it takes care of people who will need care the rest of their lives. It’s kind of like reinsurance for the auto insurance companies.
There have been occasions where the fund’s investments have been performing so well that the fund ends up with more money than is needed, according to the actuaries. When this happens, rebates are given to the drivers over time.