Rural hospitals across the Southeast are facing mounting financial and staffing pressures that experts warn could leave more small towns without nearby medical care. The National Rural Health Association reports…
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LEGISLATIVE UPDATE: SINE DIE
FY2027 Budget: The Conference Committee’s Final Deal
In the final days of Georgia’s 2026 legislative session, a conference committee made up of three House and three Senate members negotiated the final Fiscal Year 2027 (FY27) state budget after the two chambers disagreed on spending priorities across health care, workforce, and rural infrastructure. Both chambers passed the conference committee’s final FY27 budget before Sine Die on the last day of the legislative session. The FY27 budget funds the state from July 1, 2026, to June 30, 2027.
Here is what the final budget means for health care and the programs Georgians rely on:
The Big Picture
The conference committee reconciled significant differences between the House and Senate on disability services, Medicaid rates, health care workforce, and rural health investments. The result is a budget that lands between the two chambers on most health items, with a few notable exceptions.
The committee settled on 900 new NOW/COMP waiver slots for Georgians with intellectual and developmental disabilities, well above the House’s 200 but below the Senate’s historic 1,217. On Medicaid rates, the committee kept the Senate’s doubled investment in autism services parity and primary care, but restored psychiatric residential treatment facility rates the Senate had removed.
Medicaid Provider Rate Increases
The final budget includes a mix of House and Senate approaches to Medicaid reimbursement rates.
The conference committee adopted the Senate’s doubled rate increases for autism services parity. The final FY27 budget includes the increases both chambers agreed on for several services, including nursing homes, air ambulances, and facilities serving people with intellectual and developmental disabilities. The committee compromised on the two primary care rate increases, settling on a 5% increase for both.
The final budget restored funding for psychiatric residential treatment facilities at $800 per day, which the Senate had removed. However, the conference committee also maintained the Senate’s reduction to existing state funds supporting obstetric care in rural areas through the Rural OB Directed Payment Program, while increasing the add-on payment for newborn deliveries in rural counties from $2,000 to $3,000.
NOW/COMP Waiver Investment
The conference committee funded 900 new NOW and COMP waiver slots with approximately $11.6 million in state funds. More than 7,000 Georgians are currently on the waitlist for these home and community-based services. While 900 slots will not close that gap, it represents the legislature’s largest single-year investment in community-based disability services. Our partners at the Georgia Council on Developmental Disabilities made this a priority for this legislative session.
Behavioral Health
The final budget maintained the Georgia Housing Voucher Program expansion ($9.3 million for 404 housing vouchers to meet DOJ Settlement Agreement requirements). This is a GHF priority!
However, the conference committee removed the House’s funding for psychiatric residential facility discharge planning for children and adolescents and the Georgia Mental Health Consortium, a House proposal to expand the behavioral health workforce.
Graduate Medical Education and the Health Care Workforce
The conference committee took a middle path on physician training. The committee funded 124 new primary care residency slots (between the House’s 147 and the Governor’s 105), 13 new fellowship slots, and $500,000 for GME faculty expenses (significantly less than the House’s $3.67 million for one-time resident education spaces).
The committee did not include the House’s reduction for the delayed State Plan Amendment, and it restored funding for rural surgery and child psychiatry slots at Augusta University that the House had proposed and the Senate had removed.
Maternal and Child Health
The conference committee funded the expansion of the maternal home visiting program to an additional 33 counties (compared to the House’s 62, the Senate’s 31, and the Governor’s recommendation of 21). Home visiting connects expectant and new mothers with trained nurses and social workers, and these programs are among the most rigorously studied maternal health interventions. Georgia’s maternal mortality rate remains one of the highest in the nation. This is a GHF priority!
Insurance and the Marketplace
The conference committee doubled the reduction to the state’s share of 1332 waiver reinsurance funding, cutting $50 million compared to the $25 million reduction in both the House and Senate versions. The federal pass-through and State-Based Exchange fee revenue were unchanged.
The reinsurance program stabilizes premiums on Georgia’s individual insurance market, and this deeper cut comes at a particularly precarious moment. The state is simultaneously shifting reinsurance funding away from general appropriations and toward fees paid by insurers participating in Georgia Access. This shift ties the reinsurance program’s funding more closely to marketplace enrollment levels. As Georgia Access enrollment drops due to the expiration of the enhanced premium tax credits (ePTCs), insurer fees will decline, and the revenue supporting reinsurance could shrink. A large decrease in reinsurance funding could further affect Georgia’s ability to stabilize and lower premiums for Georgia Access enrollees.
State Health Benefit Plan
The conference committee maintained the $1,935 per-member per-month rate agreed upon by both chambers, a $50 increase over the current rate and well below the Governor’s proposed $2,028. The committee also added $31.6 million to address other post-employment (i.e. retirement) benefits (OPEB) liability, a new item not included in either the House or Senate versions.
Health Care Access and Rural Health
The final budget partially restored some of the rural health investments the Senate had removed, but fell well short of the House’s package. The committee funded $1 million for emergency preparedness grants in rural Georgia (down from the House’s $3 million) and $4 million for a hospital solvency evaluation process (double the House’s $2 million). However, rural hospital stabilization grants received no new funding, with the committee recognizing $2 million already in the base budget.
What’s Next
The budget now heads to Governor Kemp’s desk for his approval. Under the Georgia Constitution, the Governor has the power to line-item veto individual appropriations in the budget without rejecting the bill as a whole. Governor Kemp has used this authority in prior years to eliminate specific spending items. GHF will monitor for any line-item vetoes to health-related spending in the version of the FY27 budget that Governor Kemp signs into law.
BILLS WE’RE TRACKING
✓ Bills That Passed
House Bills:
✓ HB 506: Protecting Consumers from Surprise Ambulance Bills
Lead Sponsor: Rep. Hilton (R-48th) | Status: PASSED; AWAITS THE GOVERNOR’S SIGNATURE | GHF Position: Support
What HB 506 does: (Note: HB 506 was a bill related to Medicaid reimbursement for tobacco cessation. However, the Senate removed the original language and replaced it with SB 462, which was the Senate’s ground ambulance surprise billing bill.) Extends Georgia’s surprise billing protections to emergency ground ambulance transportation. HB 506 would cap what patients pay for out-of-network ambulance rides at the same amount they’d pay for in-network rides, and prohibit ambulance companies from billing patients for the rest. The bill sets a minimum payment rate for ambulance companies at the locally negotiated rate, or, if none exists, at the lesser of 325% of Medicare rates or the billed charges.
Consumer impact: Georgians currently face unexpected ambulance bills ranging from hundreds to thousands of dollars, even with insurance. HB 506 would close that gap in Georgia’s surprise billing law.
✓ HB 1192: State Agency Financial Accountability
Lead Sponsor: Rep. Taylor (R-173rd) | Status: PASSED; AWAITS THE GOVERNOR’S SIGNATURE | GHF Position: Monitor
What HB 1192 does: Requires the Department of Human Services and the Department of Community Health to keep funds designated for specific purposes in separate accounts and report annually to the legislature on cost savings and efficiency improvements.
Consumer impact: Greater transparency could help ensure that funds designated for specific health programs actually go toward those purposes.
✓ HB 1238: Respite Care for Families of Youth with Behavioral Health Needs
Lead Sponsor: Rep. Dempsey (R-13th) | Status: PASSED; AWAITS THE GOVERNOR’S SIGNATURE | GHF Position: Support
What HB 1238 does: Directs the state to seek federal approval for Medicaid to pay for respite care services for families caring for children under 21 with serious behavioral health conditions who are at risk of going into foster care.
Consumer impact: Families caring for children with significant behavioral health needs often reach a breaking point. Respite care gives families temporary relief while keeping kids in their homes and communities, rather than resorting to foster care or residential facilities. Respite care costs less than institutional placements and produces better outcomes for children.
✓ HB 1344: Georgia Insurance Oversight
Lead Sponsor: Rep. Reeves (R-99th) | Status: PASSED; AWAITS THE GOVERNOR’S SIGNATURE | GHF Position: Monitoring
What HB 1344 does: A wide-ranging insurance bill that strengthens DOI enforcement authority, insurance fraud penalties, and other areas specific to property, casualty, and auto insurance.
Senate Bills:
✓ SB 195: Over-the-Counter Access to Pre-Exposure Prophylaxis (PrEP)
Lead Sponsor: Sen. Hufstetler (52nd) | Status: PASSED; AWAITS THE GOVERNOR’S SIGNATURE | GHF Position: Support
What SB 195 does: SB 195 would allow pharmacists in Georgia to dispense Pre-Exposure Prophylaxis (PrEP) for HIV prevention without a prescription from a doctor. PrEP is a highly effective medication that reduces the risk of HIV transmission by up to 99% when taken as prescribed. However, barriers to accessing PrEP such as requiring a doctor’s prescription, lack of insurance, or stigma can prevent people at risk from getting preventive treatment. Expanding access through pharmacies allows individuals to obtain PrEP more quickly and conveniently, particularly in areas with limited health care providers. The bill establishes guidelines for pharmacists to provide PrEP under a statewide protocol, thereby increasing access to the medication.
✓ SB 427: Pathway for Internationally Trained Physicians
Lead Sponsor: Sen. Watson (R-1st) | Status: PASSED; AWAITS THE GOVERNOR’S SIGNATURE | GHF Position: Support
What SB 427 does: Creates a pathway for qualified physicians trained outside the U.S. to practice in Georgia. Eligible physicians would receive provisional licenses, would work under a fully licensed provider for a specific time period, and must work in underserved areas for 2-4 years to qualify for full licensure.
Consumer impact: Georgia faces significant physician shortages, especially in rural areas. SB 427 would help address workforce gaps by allowing qualified international physicians to practice while meeting supervision and practice requirements.
✓ SB 428: Medicaid Home and Community-Based Services for Mental Health
Lead Sponsor: Sen. Kirkpatrick (R-32nd) | Status: PASSED; AWAITS THE GOVERNOR’S SIGNATURE | GHF Position: Support
What SB 428 does: Directs the state to seek federal approval by December 31, 2026, for a Medicaid waiver that would pay for home and community-based mental health services for adults over 21 who need ongoing support but don’t need institutional care. Eligibility would be based on risk factors like hospitalization history, psychiatric crises, emergency visits, prior incarceration, or homelessness.
Consumer impact: SB 428 would allow Medicaid to cover ongoing community-based support that helps people remain stable and avoid costly crisis situations.
✓ SB 500: Health Care Workforce Database Expansion
Lead Sponsor: Sen. Hodges (R-3rd) | Status: PASSED; AWAITS THE GOVERNOR’S SIGNATURE | GHF Position: Under Review
What SB 500 does: Expands the existing Behavioral Health Care Workforce Database to cover all licensed health care professionals in Georgia and renames it the Health Care Workforce Database. The bill broadens the set of licensing boards required to participate in data collection without appropriating new funds or setting implementation deadlines.
✓ SB 535: Community Service Board Governance Restructuring
Lead Sponsor: Sen. Kirkpatrick (R-32nd) and others | Status: PASSED; AWAITS THE GOVERNOR’S SIGNATURE | GHF Position: Monitoring
What SB 535 does: Restructures governance of Georgia’s community service boards (CSBs) by transferring executive director appointment authority from local governing boards to the DBHDD Commissioner. Executive directors would become DBHDD employees. The Commissioner could direct executive directors to override governing board decisions when a CSB fails to meet performance standards. CSB conversions to nonprofit or other structures require Commissioner approval, and cessation of operations requires Governor approval.
Consumer impact: CSBs are the primary delivery system for community-based behavioral health and developmental disability services in Georgia. Centralizing executive director appointments under DBHDD could improve statewide accountability and help address underperforming CSBs, but the change removes local community input from leadership decisions. The bill does not define the “performance standards” that would trigger a state override of local governing board authority, leaving significant discretion to DBHDD. Consumers and families who participate in CSB governance would see their influence reduced under the new structure.
✗ Bills That Did Not Pass
House Bills:
✗ HB 291: Community Health Worker Certification
Lead Sponsor: Rep. Darlene Taylor (173rd) | Status: DID NOT PASS | GHF Position: Support. This is a GHF priority!
What the bill does: HB 291 would establish a certification process for community health workers (CHWs) in Georgia. CHWs are frontline public health workers who help connect individuals to health care and essential services, particularly in underserved communities. They go by many titles, such as Patient Navigator, Community Health Advocate, and Promotora de Salud. By setting uniform standards and training for CHWs, creating a statewide certification system would support a skilled, stable CHW workforce.
✗ HB 1262: Increasing Insurance Violation Penalties
Lead Sponsor: Rep. Lumsden (R-12th) | Status: DID NOT PASS | Note: HB 1262 was not heard by the Senate Insurance Committee, but the bill language was presented to a Senate Insurance subcommittee, along with many other insurance reform measures. While several other insurance reform measures were added to HB 1344 before it passed out of the committee, HB 1262 was not included in the amendments. | GHF Position: Support
What HB 1262 does: Raises the maximum penalties the Commissioner of Insurance can impose on insurance companies for violations of mental health parity reporting requirements, general insurance law, and the Surprise Billing Consumer Protection Act. The bill increases the current per-violation standard from $2,000 to $10,000 and the knowing-violation standard from $5,000 to $25,000.
Consumer impact: Because all penalties remain discretionary, the bill’s real-world value depends entirely on whether Georgia’s Department of Insurance (DOI) chooses to use its expanded authority. DOI has expressed support for the bill, which suggests they want to hold insurers accountable when they violate the law.
✗ HB 1393: Certificate of Need Repeal and Rural Hospital Antitrust Immunity Act
Lead Sponsor: Rep. Werkheiser (R-157th) | Status: DID NOT PASS | GHF Position: No position
What HB 1393 does: The Senate HHS Committee’s substitute combines two major changes to HB 1393. First, it repeals Georgia’s certificate of need (CON) program for all health care facilities except skilled nursing facilities, meaning hospitals, surgery centers, imaging centers, and other facilities would no longer need state approval to open, expand, or relocate. Second, it allows rural hospital authorities in counties with populations under 50,000 to jointly negotiate prices with insurers and collaborate on services while claiming limited immunity from federal antitrust law. Unlike the original House version, the substitute requires Attorney General review before immunity takes effect, caps collaborations at three rural hospital authorities, bans non-compete clauses against physicians, and requires narrow legal interpretation.
Consumer impact: The CON repeal would not improve access to care in Georgia, as the bill does not require new facilities to serve underserved communities or to accept Medicaid. The revised antitrust provisions are meaningfully improved over the original bill, but still authorize joint price negotiations between hospitals that would otherwise compete, which economic research consistently links to higher costs for commercially insured consumers. Annual oversight by DCH and the Attorney General is required but lacks funding, metrics, or clear enforcement tools.
Senate Bills:
✗ SB 462: Protecting Consumers from Surprise Ambulance Bills
Lead Sponsor: Sen. Still (R-48th) and others | Status: DID NOT PASS (see HB 506) | GHF Position: Support
What SB 462 does: Extends Georgia’s surprise billing protections to emergency ground ambulance transportation. SB 462 would cap what patients pay for out-of-network ambulance rides at the same amount they’d pay for in-network rides, and prohibit ambulance companies from billing patients for the rest. The bill sets a minimum payment rate for ambulance companies at the locally negotiated rate, or, if none exists, at the lesser of 325% of Medicare rates or the billed charges.
Note: The House also added language from HB 1274, which addresses excess auto insurance profits, to SB 462.
Consumer impact: Georgians currently face unexpected ambulance bills ranging from hundreds to thousands of dollars, even with insurance. SB 462 would close that gap in Georgia’s surprise billing law.
SUPPORT OUR WORK BEYOND THE SESSION
The legislative session has ended, but our work continues year-round.
When lawmakers leave the Gold Dome, GHF continues advocating for health care access across Georgia. During the off-session months, we:
- Provide direct assistance to Georgians navigating health coverage through our free Medicaid and Georgia Access enrollment support
- Publish in-depth research and analysis on critical health policy issues, like our new Marketplace Report tracking coverage trends and affordability in Georgia
- Build coalitions like Cover Georgia and other collaborative efforts that help to align our efforts with partners so we reach important policy goals together
- Prepare for the next session by monitoring federal policy changes, analyzing state agency actions, and developing legislative recommendations and priorities
- Educate communities about their health coverage options, rights, and resources
Your support makes all of this possible. Legislative sessions come and go, but Georgians need health care advocates every single day.
Please consider making a gift to GHF today to power our work in the months ahead.
GHF HAS YOU COVERED!
Stay connected with our work year-round.
Even when the legislature is out of session, GHF continues to monitor health policy developments and provide resources to help Georgians access the care they need. Here are ways to stay engaged:
- Follow us on social media for updates
- Subscribe to our newsletter to stay informed about health policy developments in Georgia
- Explore our policy resources and research on critical health care topics affecting Georgians
- Find or contact your legislators to share your health care story
Stay Connected
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