Rep. Stacy Erwin Oakes (D-Saginaw 95th District) is calling out the efforts by Republican lawmakers in Lansing to repeal the state’s no-fault insurance policy, which would put a cap on insurance claims.
Oakes said since former moderate Republican Gov. William Miliken championed the enactment of the state’s no-fault insurance system it has worked for consumers, and efforts to change that system will only make it worse.
“In Michigan, if you have a catastrophic accident, your medical expenses, wage loss, replacement services, and damages caused to other people’s property are covered.
Benefits are paid out of the Michigan Catastrophic Claims Association (MCCA), a private nonprofit association every Michigan driver pays into,” Oakes said. “As of 2013-2014, insurance companies assess $188 per vehicle (including tax) to cover catastrophic claims. Under no-fault, the insurer pays the claim and is reimbursed by the MCCA for medical costs exceeding $500,000.”
She said recent efforts to cap and restrict coverage are very similar to what the people of Michigan decisively rejected by statewide vote in 1992 and 1994.
Oakes said, in 2011 and 2013, Gov. Rick Snyder’s proposed no-fault reforms failed to garner the necessary legislative support.
“Now we have yet another proposal to hastily cap and restrict coverage without any assurances that it will save taxpayers and motorists money,” Oakes said. “In reality, it will increase costs to taxpayers. Proponents of the reforms deceivingly contest that no-fault is the cause of our state’s high auto insurance rates. This is false. You have to examine the averages amongst states for each portion of the policy. In doing so, you see that no-fault isn’t the culprit.”
Oakes, who used to serve as assistant attorney general in the Office of the Michigan Attorney General, said the average uncapped lifetime Personal Injury Protection (PIP) benefit costs Michigan drivers $544.20 per year, only $60 above the national average of $484.03.
“Michigan’s safeguards, protections and medical benefits are far superior to every other state for a nominal cost of $60 annually, evidence that we’re getting a tremendous return on our investment,” Oakes said. “Collision insurance is the most expensive portion of our policies. This is where we must focus our attention if we’re going to be successful in reducing auto insurance costs. If you speak to families that have been impacted by catastrophic accidents, they would tell you the peace of mind is invaluable.”
She said Michigan is one of the few states where an accident survivor is certain to receive immediate medical attention, while in other states, accident victims must sue to receive reimbursement for treatment, or they’re placed on Medicaid and taxpayers pay for the medical bills.
Oakes, who is running for State Senate in the 32nd District that includes all of Saginaw County and the western part of Genesee County, said she is running to restore critical funding for local schools, community colleges and state universities in order for young people to have a better opportunity to reach their dreams. She also wants to find ways to reform the state correctional system, especially as it pertains to expungement.
“My vision for Michigan is one where we can all come together and work collectively to pass common sense legislation to affect positive change, regardless of our beliefs and differences,’ said Oakes “We can do more to ensure that our community and state is a thriving business center and a safe place to raise families.”
For Oakes, family has always been an important foundation that has prepared her to reach career and personal goals.
“My mother taught us the value of humility, integrity and the importance of keeping your word,” said Oakes, the youngest of 13 children. “My father instilled in us the value of hard work and the importance of education. Those were our family values.”
Born and raised in Saginaw, Oakes remembers how special the quality of life was for adults and children living in the city. Streets were safe and the Saginaw public schools system produced quality educational opportunities for students K through grade 12. After graduating from Saginaw High School, Oakes attended Ferris State University where she earned a bachelor’s degree in criminal justice.
As the only African-American candidate, Oakes is optimistic about her chances in the State Senate race.
“I believe people are tired of the partisan bickering,” said Oakes, who if victorious, would be the first woman, and first African American, to win the seat. “They want someone who can work to actually get things done. At the end of the day, there needs to be a strong work ethic to be able to work with those on the other side of the aisle.”
Several Detroit area notables are hosting Oakes’ March 31 at the Westin Book-Cadillac Hotel’s 24 Grille in downtown Detroit to support her candidacy. They include Congressman Dan Kildee, David Katz, Trisha Stein, Jocelyn Benson, Rev Oscar King III, Robert King and attorney Reginald Turner.
