Georgia Takes Over Health Insurance Market Through New Law

ATLANTA — For the first time, the state government of Georgia will create its own individual health insurance market under a law signed by Governor Brian Kemp on Tuesday.

Speaking at an event at the state capitol, the Republican governor said the law would create a better way for people to learn about and compare health insurance options and "bring more competition to the field."

"Georgians know their needs best and the needs of their families," he said.

Related: What Exchanges Will Look Like in 2023

The law is one of three major changes that could affect the hundreds of thousands of Georgians who receive subsidized health insurance through the state and federal governments.

The Kemp administration also plans to roll out a partial Medicaid expansion in July to cover certain working-age adults who have incomes below the poverty line but work or attend school. And like all states, Georgia is reviewing eligibility for all Medicaid 2.4 beneficiaries after ending a pandemic-era rule that prevented the state from disqualifying all beneficiaries.

Senate Bill 65, which legislated the state market, went into effect with Kemp's signature. That overturns previous laws that prevented the state from creating its own healthcare exchange. This law was part of efforts under then-President Barack Obama to prevent Georgia from participating in the Affordable Care Act. However, the federal government offers coverage through the website Healthcare.gov, and nearly 900,000 Georgians signed up for individual coverage during the annual registration period ending January 15.

Many Georgians with incomes above the poverty line can buy insurance policies at little or no cost because of federal premium subsidies, although deductibles can be high. High-income people can also purchase policies on the individual market.

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Georgia does not accept the changes of the Obama era. Kemp still refuses to expand full Medicaid with no work requirements, a move that could provide coverage for hundreds of thousands. But if Insurance Commissioner John King manages the market for Georgians, Republicans' distaste for the Affordable Care Act diminishes. The state is spending hundreds of millions subsidizing high-cost claims, lowering premiums in individual markets, and enticing more insurers to offer coverage outside of metro Atlanta.

Department of Insurance spokesman Weston Burleson said Georgia officials hoped to launch the state's market in November this year. However, federal officials can push Georgia's start date to 2024. Federal rules typically require states to spend at least 15 months building their markets.

The country's market would be different than Kemp had originally envisioned. It wants to put the insurance quote in the hands of private intermediaries, who will be able to sell both policies that offer the coverage packages required by the Affordable Care Act and policies with lower benefits. This policy may be cheaper, but Laura Colbert, executive director of Georgians for a Healthy Future, says it will be worse for consumers.

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"That would really take Georgia back to the bad old days, where insurers actually had subsidies for consumers, where it was really hard to compare plans," Colbert said, calling Kemp's original plan "non-market."

President Joe Biden's administration opposed Kemp's plan, and after a legal battle, Kemp agreed to a state central market that would sell only federally approved policies.

Kemp administration officials said they were ready to go to market quickly because of all the work they put into the previous proposal, which cost at least $31 million.

Colbert said the country market may have some advantages. For example, I suggested that Georgia could extend the shipping deadline beyond November 15th. 15 windows He also proposed letting people buy health insurance using income tax returns, Medicaid, Peach Care for Children and common state market apps.

Some government markets have done some really innovative things. "I think it has to be determined whether or not Georgia gets there," Colbert said.

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