ATLANTA- (Jan. 27, 2010) – Sen. Preston Smith (R-Rome) today introduced his package of health insurance reform legislation in the Georgia State Senate, which is supported by more than 20 of his Senate colleagues.
“After hearing many Georgians’ concerns regarding the affordability and accessibility of health insurance, I’m providing common sense, consumer friendly solutions. Many at the federal level have argued that their hands are tied because these issues are largely governed by the individual states. If this is true, there’s no reason why the legislature cannot not change Georgia state law to address these problems,” said Sen. Smith. “After meeting with local health care providers, hospitals, physicians and individual consumers and employers who purchase health insurance for their employees, I have proposed a number of consumer-oriented solutions.”
Sen. Smith is the principal author of Senate Bills 330 and 331, which include the following provisions:
* Prohibits health insurance companies from unjustly canceling health insurance “rescissions.” This will end the practice of health insurance companies rescinding or cancelling an insurance policy based upon their allegation that the original application contained an error or omission, which is often not even related to the claim. This provision ensures that no Georgian’s access to needed medical care will be harmed by the wrongful cancelation of their health insurance plan.
* Extends health insurance coverage benefits to dependents up to age 25, regardless of whether they are full-time students. This allows parents to keep their children on their health plan through young adulthood, increasing young adults’ access to affordable health coverage. “Young adults shouldn’t lose their coverage simply because they needed five years to complete college or were unable to find a job after graduation,” noted Sen. Smith.
* Eliminates the common practice of placing annual and lifetime caps on insurance policies. The bill prohibits health plans from arbitrary annual or lifetime spending caps, protecting individuals with a catastrophic diagnosis or chronic disease by ensuring health plans meet their obligations to those with the most expensive medical needs.
* Expands access and lowers cost for small businesses to offer affordable group health insurance options to their employees. These provisions will allow small businesses to pool together through association health plans and leverage lower cost health insurance on behalf of their employees. By creating larger insurance pools for small businesses, these provisions will make health insurance more affordable and more accessible.
In addition to the bills he filed today, Sen. Smith is also a leading co-author and co-sponsor of three other health insurance reform measures this term. SB 309 will allow for interstate competition of health insurance that will increase consumer choice and inject market forces to help increase availability and bring down cost. Differences in state regulation of health insurance have resulted in significant variance in health insurance costs from state to state. Americans residing in a state with expensive health insurance plans are locked into those plans and do not currently have an opportunity to choose a lower cost option. This provision will allow Georgians to purchase licensed health insurance in any state. Insurance sold in a secondary state will still be subject to the consumer protections and fraud and abuse laws of the policy holder’s state of residence. This provision will provide access to more affordable health insurance options.
SB 50 requires transparency in the use of “rental networks,” which health insurance companies use to pay for claims covered by health insurance contracts. Sen. Smith says that many health insurance companies try to benefit from an intentionally complicated series of network agreements. Ultimately, neither the patient nor their medical provider can figure out who is supposed to pay a claim and what rate they are required to pay. Without this basic information, it is difficult to enforce payment and virtually impossible to hold anyone accountable for paying an incorrect amount or not paying at all. This often results in health insurance companies taking unfair discounts and keeps patients from getting the full benefit of their health insurance contract. This bill will require disclosure in a simple, easily obtainable form for consumers and health care providers to determine who is supposed to pay for claims and at what contracted rate.
Sen. Smith is also supporting a Constitutional Amendment that recognizes Georgians’ constitutional right to choose their own health care. Sen. Smith noted that he firmly believes no government should mandate citizens’ health care decisions. “I’m strongly opposed to the federal government or anyone else interfering with the relationship between a patient and a physician, or telling Georgia citizens what health care they can and cannot have.” As chairman of the Senate Judiciary Committee, Sen. Smith will lead the hearing on Senate Resolution 795, which the committee will discuss in its upcoming meeting on Thursday, Jan. 28.
“Reforming Georgia’s health insurance through these measures will put us on the right track to increase the availability of affordable health insurance, reign in abusive practices of certain health insurance companies, increase market competition and provide consumer-friendly solutions to citizens’ health care concerns, all without bowing to the pressure to socialize our health care system and decrease the quality of the care we enjoy.”
Sen. Preston Smith serves as Chairman of the Judiciary Committee. He represents the 52nd Senate District which includes Floyd County and portions of Bartow and Gordon counties. He may be reached by phone at 404.656.0034 or by e-mail at preston.smith@senate.ga.gov.
PRESS RELEASE
For Immediate Release:
January 27, 2010
For Information Contact:
Raegan Weber, Director
Kallarin Richards, Senior Communications Specialist
kallarin.richards@senate.ga.gov
404.656.0028