It’s official now. As of July 1, 2011, insurance companies that have been licensed in Georgia will be allowed to sell health insurance policies that come from across state lines to people who live in Georgia. This is controversial because some other states provide less coverage than what insurance companies currently have to provide in Georgia.
As of July 1, 2011, several new laws will take affect in Georgia. This is the start of the state’s fiscal year, so perhaps that is why the date was selected. One law will authorize the sale of health insurance policies from across state lines to Georgia residents. It has been said that this is the first time a law like this one has been passed anywhere in the United States.
The sale of health insurance across state lines is controversial in part because each state has its own regulations and rules about exactly what health insurance companies are required to provide coverage for.
Allowing insurers to sell policies that originated out of state could lead to confusion about what, exactly, a person’s health insurance will actually cover. It also basically allows some insurance companies to be exempt from state regulations, while requiring other companies, (who are located inside that state), to meet the state standards.
Critics of this new law have concerns that it will result in insurance companies offering health insurance policies that are “watered down”. In other words, it is possible that insurers would find that it costs them less money to sell policies that originated outside of Georgia, and shift their focus to selling that type of health insurance instead of the ones that provide more protection to Georgia citizens. There is fear that it will be harder for people to find coverage for diabetes care, mammograms, and checkups for young children as a result of this new law.
On the other hand, supporters say that the new law could result in more competition between insurance companies. There is belief that the competition could force insurance companies to lower their prices for health insurance, (in order to attract and retain customers). Right now, around 20% of the people who live in Georgia are uninsured, specifically because they can’t find an affordable health insurance policy.
The state insurance commissioner’s office will need to write and adopt regulations that affect the health insurance policies that come from across state lines. This can take months, so it will be a while before anyone who lives in Georgia will be able to purchase a policy from out of state. The new law only affects individual health insurance policies. There will be no changes to group policies, like the type that people get from their employer.
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