The insurance market, Georgia style

 

 

By Mike King, author of A Spirit of Charity

 

So, another session of the Georgia General Assembly has drawn, gloriously, to an end. We should all breathe a sigh of relief. The inmates are finally out of the asylum again. (Okay, I know that’s counterintuitive, but if you’ve ever spent any time around the Georgia legislature, you know what I mean.)

 

For public health advocates, there was little to cheer in this session. But then again with this bunch of solons,  just keeping stupid stuff from happening can be counted as progress.

 

Case in point: While other states are re-examining their knee-jerk opposition to expanding Medicaid under Obamacare, Georgia remains consistently obstinate – to the point of turning away about $9 million a day in federal funding that would allow hundreds of thousands of the state’s low-income adults and families to qualify for coverage.

 

At least this year there was no effort to claw back any more provisions of the law that would make it easier for people to sign up on the Obamacare exchanges. It wasn’t that long ago that the Legislature and Insurance Commissioner  threatened state employees (at UGA, in public health departments and other state government agencies) with repercussions if they agreed to become unpaid, volunteer navigators that the new health law encouraged in order to help people understand their rights and benefits.

 

But  this year something even more ironic happened. Had it not been for the vigilance of The Atlanta Journal-Constitution in shining a spotlight on the usual shenanigans at the Gold Dome in the last weeks of the session, the state’s poor, put-upon insurance brokers would have had a guaranteed commission for any policies they sold on the Obamacare marketplace.

Yes, you read that correctly. The Legislature seriously considered a law that would have guaranteed insurance brokers a minimum commission.

These free-market-loving legislators were complaining, bitterly it turns out, that the health insurance companies were hosing their friends in the brokerage business. They contended the insurance firms were shortchanging the agents because the big companies were only being allowed to get a 20 percent return on premiums under Obamacare rules governing  profits, marketing and administrative expenses of the companies selling plans on the exchanges. That’s just plain unfair, or so the legislators – many of whom sell insurance in their day jobs – seemed to think. The dirty little secret, of course, is that individuals don’t need an agent to go on the exchange to help them find a policy – no more than you need an airline reservation clerk to book you a ticket, or a paid advisor to help you sign up for natural gas service or digital television. Perhaps an agent would be helpful in finding group policies for small businesses, but compensation for that role is usually negotiated between the agent and the company he or she is touting. If they don’t like the deal, the brokers could walk away. But, no, they wanted the Legislature to guarantee them a piece of the action.

In the end this heaping helping of special-interest guano was too much for the legislative leadership to swallow, especially once the newspaper was on the story, so the insurance-broker-full-employment-bill died a much-deserved death.

 

Meanwhile, as Andy Miller at Georgia Health News reports, the impact of the state’s resistance to Medicaid expansion can now be quantified in an area where Georgia has a pretty shameful history to begin with.http://www.georgiahealthnews.com/2016/03/feds-medicaid-expansion-thousands-mental-health-drug-patients

The hits just keep coming.

I suspect the guaranteed commission bill will be back next year, as will the advocates of hundreds of thousands of Georgians who just want a little help finding affordable insurance. It is, and always has been, a matter of priority.

 

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