What is CPan?

 CPAN (the Coalition Protecting Auto No-Fault) was formed in 2003 by 26 professional associations who shared the strongly held belief that it was in the public interest to preserve Michigan's model no-fault auto insurance system and to make sure that the Michigan auto insurance industry kept the original no-fault promise it made to Michigan citizens when the No-Fault Act was passed in 1972.

Since its formation in 2003, CPAN has fought vigorously to preserve Michigan's model no-fault insurance system.  These efforts have resulted in many victories for patients and providers, including the following:

  • Stopping bad legislation - CPAN and its members have worked successfully to stop bad legislation from becoming law, including: (1) stopping medical fee schedules, (2) stopping managed care, and (3) stopping reductions in personal injury protection benefits (also called PIP choice).
  • Sponsoring proactive legislation - CPAN has gone on the offensive and sponsored many items of positive legislation protecting the rights of patients and medical providers, including: (1) placing restrictions on the rights of insurance companies to audit medical bills; (2) restoring protections on the statute of limitations for minors, incompetent persons, and medical providers; (3) guaranteeing the right of patients to choose their medical providers and case managers; (4) penalizing insurance companies for the wrongful, bad-faith denial of claims; and (5) repealing the Kreiner decision so that auto accident victims can hold drunk and careless drivers fully accountable.
  • Fighting court battles - CPAN has filed approximately 17 amicus curiae briefs in the Michigan Supreme Court.  In every one of these cases, CPAN fought hard to protect the interests of the patients and providers, including urging the Court to: (1) restrict the ability of insurance companies to discount bills for medical treatment by hiring auditing companies whose role is to reduce reimbursement to providers; (2) restore the protections of the statute of limitations for minors, incompetent persons and medical providers; (3) prohibit the sale of managed care policies that would convert our no-fault system from a fee-for-services to a managed care system; (4) to limit the power of the Michigan Catastrophic Claims Association (MCCA) to deny reimbursement of provider charges; and (5) to repeal the Kreinerdecision so that victims can hold drunk and careless drivers fully accountable.  

Rate Increase Highlights Need  for Auto No-Fault Transparency 


LANSING – As of yesterday, all Michigan drivers had an additional $11 added to their auto insurance policies. The cost increase, which comes on the heels of a $30 rate increase last year, is the result of the insurance industry-controlled Michigan Catastrophic Claims Association (MCCA) increasing the fee charged to every Michigan auto insurance policy. The per-vehicle annual fee is now $186. 

 Coalition Protecting Auto No-Fault (CPAN) president John Cornack points out that the continued rate increases have conveniently come at a time when insurance companies are pointing to increasing auto insurance costs as a reason to justify their proposed no-fault insurance reforms.  

 “Every driver in Michigan helps fund the MCCA, which provides important life-saving care to Michigan’s most severely injured accident victims. The problem is this fund is completely controlled by insurance industry executives who refuse to reveal the actuarial data to justify these continued rate hikes,” said Cornack. “There is a real concern that the insurance industry is using these rate increases to bully the public into accepting cuts to their no-fault benefits – cuts that will harm severely injured accident victims and shift millions of dollars of injury care costs onto Michigan taxpayers. Before any sort of major reforms are discussed, there has to be transparency.”

 In its quest for increased auto no-fault transparency, CPAN has issued Freedom of Information Act (FOIA) requests to the MCCA as well as Michigan Department of Insurance and Financial Services Director Kevin Clinton. CPAN and the Brain Injury Association of Michigan are currently involved in a FOIA lawsuit against the MCCA, which is awaiting a hearing at the Michigan Court of Appeals.  

 The MCCA is a reinsurance fund created by the state legislature in 1978. Each Michigan insurance policy is now charged an annual $186 per-vehicle assessment to fund the MCCA, which helps reimburse insurers for costs above $530,000 for the care and treatment of seriously injured auto accident survivors. About 13,000 accident survivors are provided care through MCCA reimbursements. Last year, the MCCA reported holding $14 billion in assets. 

 

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The Coalition Protecting Auto No-Fault: The Coalition Protecting Auto No-Fault is a broad-based coalition of consumer advocate groups, lawyers, doctors, hospitals and other health care providers working together to keep Michigan’s model no-fault insurance law intact. Learn more about CPAN by visiting www.ProtectNoFault.org.  

Brief Explanation of Michigan No-Fault Insurance 

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