MCCA Fee to Drop Below $100 for First Time Ever

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cars in lane stuck in traffic representing MCCA Fee

Beginning July 2021, the Michigan Catastrophic Claims Association (MCCA) fee will drop below $100 for the first time in nearly 20 years. Their fee for the July 1, 2021 – June 30, 2022 period is dropping down to $86 per vehicle.

This is the second consecutive year for decreases in the fee. For the 2020-2021 year, it was $100 per vehicle.

The MCCA fee applies only to vehicles that have Unlimited Personal Injury Protection (PIP). Due to the changes in Michigan’s No-Fault Law in 2020, people have the option to select PIP limits other than Unlimited. For FAQs about the Michigan’s No-Fault Law, check out our blog here.

Those other options are: $500,000; $250,000; $50,000 with Medicaid; or opting out with a qualified health plan or Medicare with Parts A & B. For those who select a lower option, the MCCA fee does not apply.

Vehicle owners who are eligible to opt-out of all medical benefits from their auto insurance policy are also exempt from the MCCA fee.

If you’re a commercial client for Michigan Insurance Company, you should be aware of their upcoming changes.

Michigan Insurance Company is updating their CLM Division One Commercial Auto Program.

Michigan Insurance Company has updated the MCCA charge from $100 to $86 per vehicle in response to the November 2020 Michigan Catastrophic Claims Association Assessment Bulletin.

This change will be effective July 1, 2021. Michigan Insurance Company will also be revising Michigan Personal Injury Protection endorsement CAD 22 20 to add Attendant Care under the Limit of Insurance provision. This will be effective July 2, 2021.

If you’d like a copy of the form, you can view it here.

Out of State Workers Compensation: What You Need to Know

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man filling out workers compensation form

We have a lot of Michigan-based companies that travel to Ohio for work.

If this applies to you, we want you to be aware of how working out of state affects your workers compensation.

According to the Ohio Bureau of Workers Compensation (BWC), “Ohio’s workers’ compensation laws now recognize the extraterritorial coverage of an out-of-state employer for 90 consecutive days. The 90-Day Rule is applicable to all industries, including construction.”

However, there is an exclusion to this.

“The employee cannot receive compensation and benefits from BWC for claims arising out of a temporary period not exceeding 90 consecutive days. The rights of the employee and his or her dependents under the laws of the other state are the exclusive remedy,” According to the Bureau of Workers Compensation.

What does this mean?

If your employee works less than 90 consecutive days in Ohio, the workers compensation coverage, rules, and laws for the state your company operates in will be what covers your employees. In this case, it would be Michigan. If your employee works more than 90 consecutive days, you will need to pay premiums through Ohio’s BWC.

In situations like this, we recommend that you get Ohio Stop Gap coverage to help cover any insurance gaps for your business.

Ohio is a state that does not include employer liability protections in their workers compensation. If your employee receives workers compensation through Ohio because they’re exceeding the 90 Day Rule that keeps them covered under Michigan’s compensation laws, it will leave you without much needed liability protections.

This puts you at risk for being sued by your employee if they were injured or hurt during the time they’re working in Ohio. Stop gap insurance will help you avoid this gap in liability coverage.

If you’re currently having your employees travel to Ohio for work, be sure to talk to your insurance agent to learn more about your liabilities, coverage that’s needed, and any questions you have regarding workers compensation benefits.

You can also check out this Out-of-State Employers fact sheet from the BWC to learn more about workers compensation benefits for both current and non-Ohio residents.