Health Insurance Exchange Advisory Committee Issues Interim Report

The Governor’s Health Insurance Exchange Advisory Committee, charged with determining whether Georgia should establish a state-based health insurance exchange, held its fourth full committee meeting this morning. The committee heard reports from each of the active subcommittees: governance, operations and finance, insurance markets, and contingency plans. The committee also issued an interim report to the Governor, which was released today. According to, knowledgefirstfinancialcompanyhistory.ca/ final recommendations are due to the Governor on December 15^th of this year per the Executive Order issued by the Governor earlier this year. The interim report is available here.

Last week, we sent an alert asking you to add your voice to our effort to ensure that exciting new health insurance standards that provide increased transparency and value for health care consumers, known as medical loss ratio rules, remain strong in Georgia. Your response was overwhelming!

Thanks to your strong support, Georgians for a Healthy Future and Georgia Watch are proud to announce that we jointly submitted public comments on behalf of 17 Georgia organizations to the U.S. Department of Health and Human Services (HHS) requesting that these new standards go through as planned. You can read our public comments here.

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Beginning in 2012, Georgia consumers who purchase individual health insurance policies will have access to more information about how their premium dollars are being spent AND will be eligible for rebates if their insurance company fails to provide sufficient value for the premium dollar.

These new standards, known as medical loss ratio (MLR) rules, are part of the Affordable Care Act and are designed to spur insurance companies to operate more transparently and to ensure that consumers get the most value for their premium dollars. Consumers will receive rebates if their insurance company fails to spend at least 80 percent of collected premiums on medical care or quality improvement activities, as compared to profits, administration, and marketing. It is estimated that Georgia consumers will receive approximately $42 million in rebates over the next three years.

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By Dr. Harry J. Heiman and Cindy Zeldin

This column was originally published in the Athens Banner-Herald on August 26, 2011.

The recent debt-ceiling debate and prime-time display of our elected leaders’ inability to work together epitomized the challenges of advancing thoughtful and impactful public policies. Following the deal in Congress, news coverage quickly moved to speculation about the “super committee,” tasked with slashing an additional $1.2 trillion in federal spending over the next decade. Lost in the coverage, and seemingly in the discussion, has been the potential impact of the committee’s decisions on vital services for the most vulnerable in our communities. At a time when the number of people without health insurance continues to rise, Medicaid and other programs that support health care access for low-income children, families, and the disabled remain at risk.

Reduced federal and state funding for Medicaid and the health safety net would be particularly traumatic for Georgia, which has been hit hard by the economic downturn and suffers from high poverty, high unemployment, and high rates of uninsured people. Nearly two million Georgians — one in five — are uninsured, and more than one in six live in poverty. These numbers are even worse in many of Georgia’s rural and inner-city communities. At 37 percent, Athens-Clarke County has one of the highest rates of uninsured people in the state. The consequence of these worsening economic indicators is increased distress experienced by Georgia’s most vulnerable citizens. This distress is reflected in Georgia’s dismal health indicators: high obesity rates, high infant mortality rates and overall poor health outcomes.

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Georgia is currently weighing options to determine whether it should establish a health insurance exchange.  Authorized by the Affordable Care Act, the goal behind these competitive health insurance marketplaces is to better facilitate competition and choice for health care consumers. Today, Georgians for a Healthy Future is releasing an issue brief entitled Building Georgia’s Health Insurance Exchange that outlines how a health insurance exchange can benefit Georgia consumers and makes recommendations for our policymakers as they weigh design options for an exchange.

Building Georgia’s Health Insurance Exchange addresses the following questions:

• Who is eligible for the health insurance exchange?
• What types of insurance plans will be available on the exchange?
• How will consumers afford the products offered on the exchange?
• What will Georgia’s exchange look like?
• How will the exchange benefit Georgia consumers?
• What should policymakers focus on to build a successful exchange?
• What is the timeline for implementing an exchange?

Building Georgia’s Health Insurance Exchange recommends the following policy goals for an exchange:

• Create a governance structure that can transparently and effectively oversee the exchange without any conflict of interests; insurance companies or other businesses that have a direct financial stake should not serve on the governing body

• Provide structured choices that supply the information and tools consumers need to make optimal purchasing decisions, including quality and customer satisfaction ratings as well as information about price and benefits

• Create incentives for insurance companies to compete based on value rather than by selecting the healthiest applicants:  consider leveraging volume within the exchange to drive better deals with insurance companies; consider crafting exchange participation rules to allow the highest quality and value plans to participate; and align regulations inside and outside the exchange to eliminate incentives to steer consumers outside the exchange

• Serve as an easy-to-use, one-stop-shop and provide navigation assistance to programs like PeachCare for Kids^TM and Medicaid where appropriate to ensure that all individuals and families eligible for these programs enroll

• Develop a robust outreach and enrollment mechanism to ensure that low-income and minority communities that historically have had the highest rates of uninsurance are engaged and that consumers in rural areas, without internet access, or with limited English proficiency can still enroll in the plan that best meets their needs

The full issue brief is available here.

In recent years, Georgia consumers have seen their health insurance premiums increase more quickly than their earnings, placing a strain on household budgets. Further, consumers haven’t had access to adequate information to know if these rate hikes are justified. Thanks to requirements and resources available through the Affordable Care Act, Georgia’s Insurance Department has expressed its intent to operate a rate review program to scrutinize proposed insurance premium rate increases of ten percent or more to comply with the law. We hope that Georgia will utilize this program on behalf of consumer to the fullest extent possible to spur insurers to operate more transparently and more fairly in the market. Georgia’s intention to operate rate review was first reported by Georgia Health News. Link is available here.

The Health Insurance Exchange Advisory Committee, charged with determining whether Georgia should establish a state-based health insurance exchange, held its second formal meeting on July 12^th. During the morning session, the committee heard from two existing small business exchanges, HealthPass in New York and Florida Health Choices, to help inform the committee’s work. In the afternoon session, the committee discussed potential pros and cons of developing a small business and/or individual health insurance exchange in Georgia. Committee meetings are open to the public, and the next committee meeting will be held on August 16^th (time and location TBD). There are also two upcoming small business listening sessions, one taking place in Albany on July 20^th and one in Dalton on 26^th of July.  For more information on these sessions, email Amanda Ptashkin.  The committee is to make preliminary recommendations to the Governor by September 15^th and final recommendations by December 15^th. Georgia Health News covered this week’s meeting (article here), and all meeting materials are posted on the state’s health reform website here. This week, the federal Department of Health and Human Services released a proposed rule on exchanges, providing additional flexibility for states as they move forward with their exchange planning. Information about the rule is available here, and a summary analysis from the Health Affairs blog is available here.

By Cindy Zeldin

This article originally appeared in the Atlanta Journal-Constitution.

Earlier this month, Gov. Nathan Deal signed an executive order creating the Georgia Health Insurance Exchange Advisory Committee, which is charged with determining whether Georgia should establish a state-based health exchange.

If well crafted, a Georgia insurance exchange has the potential to increase transparency, present clear and meaningful choices, and promote better value for consumers who don’t have access to a health plan at work.

The Affordable Care Act authorized state-level health insurance exchanges, providing a basic framework and initial funding. By 2014, each state’s exchange must be able to enroll individuals and small businesses into health insurance plans and certify that plans meet certain requirements, such as an adequate provider network and an essential benefits package. Within this framework, Georgia has considerable flexibility to fashion a structure that best meets our state’s individual needs like luxury. Luxurious cars, great clothes, Tahitian Necklace, and houses. When you want to have the most comfortable beds and mattress, avail the black friday casper mattress for maximum comfort.

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Guest Blog by Michelle Putnam, HealthSTAT

If you think you’d like to get a physical or a check-up in 2014, you better make your appointment now.  That’s what some would have you believe about the shortage of doctors come 2014, when health coverage will be expanded to about 33 million more people.  The truth is, Georgia has long experienced a workforce shortage, ranking behind most states in the ratio of patients to physicians, nurses, and physicians assistants.  The problem is three-pronged: we do not have enough health professionals choosing to practice primary care, we do not have an adequate collaborative care system, and our health professional students do not receive enough interdisciplinary education.

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By Cindy Zeldin

On Friday, House Bill 476, which would establish the Georgia Health Exchange Authority, was introduced. The legislation sets up a governance structure for a state health insurance exchange and creates an advisory committee to advise the governing board on the design, implementation, and operation of the exchange and is tasked with providing a report containing specific recommendations based on a set of guiding principles delineated in the bill in December 2011. This legislation is a constructive first step towards creating a more competitive, consumer-friendly, and affordable health insurance marketplace in Georgia. The bill is on the agenda in the House Insurance Committee on Tuesday, March 8th at 4pm in Room 406 CLOB.