Health Insurance Georgia

Private Health Insurance Companies Georgia

February 4th, 2008

With every year that has gone by, the people –the public of Georgia has been more and more vigilant and conscious of their welfare and rights. There has now been an open-ended discussion on the single payer health universal insurance that is talked to be coming to Georgia. Efforts are indeed on the way to get a universal, single payer health care system in Georgia. The website of the organization contains more details of the initiative and its plans. This is a major concern of the several private health insurance companies in Georgia. Private health insurance companies in Georgia are threatened by the advocacy of organizations making the “big push”. At initial surface, the adverse effect of the organization’s initiative can be immediately realized by the private health insurance companies in Georgia. Highlights of the legislation declare that patients get free choice of health care providers and hospitals. No payment is needed when you visit your personal physician for check-ups –no premiums, no co-payments, no deductibles, no one excluded. Georgians will pay absolutely nothing.

Unlike the private health insurance companies in Georgia, you pay nothing as well when you get your prescription filled by a pharmacist. If you need hospitalization, no payment is needed again –no premiums, no co-payments and no deductibles; unlike the charges you are likely to incur with the private health insurance companies in Georgia. In each of the mentioned cases, the health care provider is reimbursed from the established Georgia Health Care Fund. With this intimidating strategy, some private health insurance companies in Georgia and the other members of the profitable industry has appealed to the media through some “misconceptions” and perceptions about the advocacy plan.

The Georgia Health Care Fund gets its money from existing resources that only need to be maximized. In the proposed plan, those people who are earning less than the Social Security tax cap –which is currently $97,500 a year will be funded by the system that has various sources. Sources include about 3.85% payroll tax paid by employers, up to 3% gross receipts tax paid by the businesses, 6.2% tax on individual compensation in excess of the Social Security tax cap, and the 5% surtax on adjusted gross income over $200,000. These won’t be applicable or even feasible for private health insurance companies in Georgia. Funds from other government sources will also be used for the Georgia Health Care Fund. Again, the benefits that the proposed plan offers will dilute the private health insurance companies in Georgia. Presently, employers that coordinate with private health insurance companies in Ohio, pay for the coverage. With the proposed plan, the money paid to the private health insurance companies in Georgia will now be directed to the Georgia Health Care Fund instead. The benefits of the proposed plan are indeed beneficial to the Georgian public. This however, is not so good to the “top line” and “bottom line” of the existing private health insurance companies in Georgia.  The discussion for private health insurance companies in Georgia still has a long way to go.

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