State Sen. Judson Hill (R-Marietta) authored Senate Bill 407 designed to increase competition among insurance providers to help drive down costs and expand access for many uninsured or underinsured Georgians.

MARIETTA (Mar. 10, 2010) – A bill that would allow Georgia healthcare customers to buy approved out-of-state healthcare insurance plans was endorsed by the Senate Insurance & Labor Committee Tuesday at the Capitol. State Sen. Judson Hill (R-Marietta) authored Senate Bill 407 designed to increase competition among insurance providers to help drive down costs and expand access for many uninsured or underinsured Georgians.

“During my time as a state Senator I have led the way to seek free-market based solutions to improve and enhance Georgia’s health care system,” said Hill. “Senate Bill 407 allows the market to dictate the price and ultimately puts the power in the people’s hands, providing a wide array of health insurance choices for Georgians and their families. Increasing Georgia’s health insurance options through market competition is a proven method to reduce premiums, expand access to healthcare, and increase the quality of healthcare in our state.”

Hill’s legislation will give the Georgia state insurance commissioner authority to identify at least five states with health insurance laws and regulations substantially consistent with Georgia law. The state could then approve individual health insurance policies for sale in Georgia that have been approved in those states and as long as the insurer is an authorized insurer in Georgia.

SB 407 also directs the insurance commissioner to form a group of like-minded states for establishing rules of reciprocity for the approval of comprehensive individual medical and surgical health insurance policies among the participating states. Hill mentioned this policy will ensure consumer protection with the states coming together to approve quality, highly-respected insurance providers as part of this legislation. Out-of-state companies offering health benefit plans under SB 407 will be subject to regulation by the commissioner regarding the enforcement of the contractual benefits under the health benefit plan, including the prompt payment of insurance claims

Hill first introduced legislation allowing cross-state purchasing of health insurance in 2007. The initiative has gained momentum nationwide and is now considered a necessary part of any market-based healthcare reform package designed to increase access and make heath insurance more affordable.

SB 407 now heads to the Senate Rules Committee before being taken up on the Senate floor for a full vote.

For more information on Senate Bill 407, please visit:

http://www.legis.ga.gov/legis/2009_10/sum/sb407.htm