Sine Die: Big Payday for Georgia Insurance Companies?

If you don't think that Georgia Insurance Companies need a $150 million dollar payday tomorrow, funded by tax dollars, then you need to call your senator tonight. Tell them to vote "no" on HB977.

When I was in Iowa, the red Traveler's umbrella was a landmark in Des Moines, but if Georgia Republicans have their way, Georgia may become a new haven for insurance companies. Not so much for consumers, though or for children without healthcare. Tomorrow may be the last day of the legislative session, but the insurance industry is still hoping to bank a cool $150 million in tax breaks to push high deductible-let's call these what they really are-"do-it-yourself healthcare plans." "Do-it-yourself" because while you will still pay the insurance company premiums, when it comes to paying the bills, absent something catastrophic, you pretty much have to manage that on your own. I wrote about this earlier this month, and Rep. Tom Knox has earned himself a CL Golden Sleaze Award for his rather friendly arrangement with the insurance industry, demonstrated by his sponsorship of this bill and others.


Over at American Forum, Dr. David Blumenthal has posted an insightful piece about why these insurance policies are probably not worth the paper they're written on. Here's a quote:

Faced with a high deductible and an outlay of cash to meet even minimal health needs, many consumers will postpone needed care and forgo preventive services altogether. In the short run, money will be saved for the consumer and the health care system. In the slightly longer run, asthmatic kids will wind up in the hospital, middle-aged adults with uncontrolled high blood pressure will have heart attacks, and the elderly who failed to get screened for cancer will have it discovered in advanced stages. Health care costs will increase and Georgians will be less healthy.

Please contact your State Senator today and ask him or her to oppose HB 977. Follow the link above, or visit www.capitolconnect.com/aarp, register your name and address and follow the action steps under state alerts to send an email directly to your State Senator.

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Vic Jones is Going to Love This

We can rely Georgia Republicans to take care of big insurance companies who pour dollars into their campaign accounts. The rest of us are just out of luck. According to an op-ed in today's Telegraph, on Thursday, thanks to Rep. Tom Knox and a quick legislative slight of hand, both chambers of the Georgia General Assembly passed a bill including a provision that makes it unnecessary for insurance companies to get approval from the Insurance Commissioner before passing certain rate increases on to consumers. Here's a portion of Charles Richardson's piece:

So what did the industry buy? The Judiciary Committee added language in Section 4 that will change the way insurance companies raise rates in Georgia. For all the other legal mumbo-jumbo, it comes down to a single sentence: "For all such private passenger motor vehicle insurance (rates) shall be effective upon filing and shall be implemented without approval of the Commissioner."Though insurance companies still have to go through the filing process with the insurance commissioner's office, policy holders will get a bill and be expected to pay it before the commissioner signs off on the increase. There is a smoke and mirrors caveat. Proponents of this sleight-of-hand point to the provision that requires companies to seek the insurance commissioner approval before raising rates on policies that carry mandated minimum coverages. According to Oxendine, 90 percent of policy holders carry insurance above the minimum.

Good to know you're looking out for us, there, Tom. Actually, it looks like Tom is serving those who have contributed rather richly to his campaign. A check of just his December, 2007 disclosure shows a rather tidy sum from insurance companies and their lobbyists. By the way, I noted on the disclosure that in that reporting period, Rep. Knox did not have a single contribution from an individual donor-all special interest pacs and businesses.

If any question remains about whether the insurance industry had a "special" investment in this piece of legislation, all you have to do is check the website of one of Rep. Knox's contributors, American Insurance Association. The headline, Georgia General Assembly Passes Key Auto Reform Measure is at the top of their "news releases."

On another note, when is Civil Justice PAC (trial lawyers) going to stop feeding the hand that bites it?

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