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Lansing, Michigan

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Tim Skubick Gets It Right on Michigan’s Tax Without Transparency

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The Michigan Catastrophic Claims Association (MCCA) is hiding something from you. Because of the MCCA, every motorist in Michigan will be paying higher premiums for auto insurance. Why? Only the MCCA knows, and they don't want to tell anyone. And besides, according to Insurance Commissioner Kevin Clinton, you wouldn't understand the explanation anyway.

To long-time Michigan political journalist Tim Skubick, this sounds akin to taxation without representation. It is, at the very least, an unjustified rate hike without any transparency or accountability. Skubick takes the insurance industry to task for raising the catastrophic claim surcharge by nearly 2,500% in the last twelve years. While the outrageous rate hikes themselves would be cause enough for alarm, the fact that the decisionmaking is done behind closed doors by representatives of the insurance industry should be infuriating to consumers throughout the state.

State Representative Phil Cavanagh (D – Redford Township), has proposed an answer. House Bills 4785 and 4786 would subject the MCCA to the Open Meetings Act, FOIA, independent audit, and, in short, accountability.