Governor Sonny Perdue signed into law Georgia House Bill 977 and Senate Bill 383 which will result in Georgia families having the best health insurance options available in any state. The Governor deserves significant credit for his leadership on this issue as do Senator Judson Hill and Representative Tom Knox who shepherded this legislation through the legislature.

“Speaker Gingrich and the Center for Health Transformation have put forth the efforts, ideas, creativity and accountability to keep us focused on the important things in life,” said Governor Perdue. “This legislation is the next big step in consumer driven healthcare.”

The new law will dramatically expand the quality and quantity of health insurance policies available in the State of Georgia. The most exciting feature of this bill is that it allows insurers to provide specific monetary rewards and incentives for healthy behavior.

In other words, health insurance companies will be encouraged to take a pro-active role in rewarding people to achieve better health. For example, insurance companies will be able to reward individuals for quitting smoking, losing weight and participating in health management programs which improve health outcomes and therefore decrease costs. These type programs are particularly promising for individuals with chronic conditions such as diabetes, asthma and heart trouble.

In addition, the law makes premiums for Health Savings Account-eligible plans 100 percent deductible against state income tax for individuals. It also allows a $250 tax credit per employee for small employers who offer HSAs to their employees.

“Georgia has gone further than any other state,” said Jim Frogue, State Project Director. “Look for other states to copy Georgia or, just as good, simply allow Georgia-based health insurance policies to be sold in their state. In most instances, that would only require an administrative ruling by the Insurance Commissioner.”

This strategy perfectly targets the current pool of uninsured Georgians who are largely employed, but who are not involved in an employer’s plan for a variety of reasons. The law removes all state and local premium taxes in an effort to make insurance policies more affordable for Georgians.

Finally, the bill allows for a “fast-track” approval process of HSA plans which are currently available in other states for sale in Georgia. This strategy will ensure vigorous competition that is likely to result in lower costs and higher quality plans for Georgians.

“Georgia will soon be recognized as a national leader in addressing the issues of the uninsured,” said CEO Nancy Desmond.  “This law sets a high standard for other states to follow suit.”

By creating opportunities for Georgia insurance companies to offer new, innovative products not only will the state benefit from a robust and competitive marketplace but also a half million uninsured Georgians will soon have access to health insurance coverage.

About the Center for Health Transformation
The Center for Health Transformation is a high-impact collaboration of private and public sector leaders committed to creating a 21st Century Intelligent Health System that saves lives and saves money for all Americans. The Center is a for-profit, bi-partisan membership-based organization with over 100 members who participate in member meetings, collaborative workshops, training sessions and workgroups, and projects such as Developing a Roadmap to Cure Alzheimer’s, Affordable Coverage for All Americans, Diabetes Transformation and more.  The Center, through CHT Press, has recently published “The Art of Transformation” by Newt Gingrich and Nancy Desmond and “Paper Kills: Transforming Health and Healthcare with Information Technology” edited by Project Director David Merritt. For more information and to view a video of the presentations, please visit www.healthtransformation.net.

                                    Photo Credit: Office of Gov. Perdue