While there have been no recent legislative actions on healthcare transparency, cost, or markets in Georgia, we have our eye on provider markets in the state. Several Georgia rural hospitals have closed in the past four years, indicating a crisis of access for low-income and underserved residents in non-urban areas. In addition, on September 5, 2014 the FTC announced that it was withdrawing its acceptance of the consent agreement reached in the August 2013 settlement with the Hospital Authority of Albany-Dougherty County and Phoebe Putney Health System following a merger challenge by the FTC that had gone all the way to the U.S. Supreme Court.
Georgia’s regular legislative session has ended for 2017.
Recent Legislative Developments
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We compile state statutes relate to healthcare price and competition, including healthcare transparency, markets, and costs. For a complete listing of all health related statutes visit the State Health Practice Database for Research.
Transparency in Healthcare
- C.G.A. § 33-3-21 requires that every insurer file with a report with the Commissioner of Insurance of its affairs and operations annually, and any other periodic reports the Commissioner prescribes by regulation.
- C.G.A. 33-20-23 all health care corporations must keep their books and records in accordance with the Commissioner’s requirements, and all books and records are subject to inspection.
- C.G.A. 33-20-24 states that healthcare corporations must make periodic reports to the commissioner of insurance as necessary to protect policyholders and the public.
- C.G.A 31-7-280 et seq. obligates health care facilities and providers to issue an annual report containing information regarding their financial condition and other public health data. The department is required to establish and operate a state-wide health care data system to collect the data pursuant to this chapter and disseminate it, incorporating also data from third-party payers.
- C.G.A. 31-7-400 et seq. requires that entities must notify the Attorney General before acquiring a nonprofit hospital. The Attorney General will hold a hearing for the purpose of ensuring that the public’s interest is protected by way of a full disclosure of the purpose and terms of the transaction and by providing an opportunity for local public input.
- C.G.A. 33-20a-6 prevents a managed care plan from using a financial incentive or disincentive program for ordering or providing less than medically necessary and appropriate care. Capitated payments are not prohibited, however.
- C.G.A. 31-6-40 implements a Certificate of Need (CON) program, which requires that a facility must obtain regulatory approval ensuring genuine community need before offering new or expanded health care services. A CON program can be anticompetitive by increasing the regulatory burden on new or smaller healthcare providers.
- C.G.A. § 10-1-393 applies provisions of the state Fair Business Practices Act to contracts for healthcare services between a physician and an insurer in order to protect consumers and businesses from unfair or deceptive trade practices.
- C.G.A. 33-6-3 et seq. prohibits unfair methods of competition and unfair or deceptive acts or practices in the business of insurance.
- C.G.A. 33-20-20 health care corporations must submit a schedule of rates and plans for prior approval from the Commissioner of Insurance before they accept applications from subscribers in a nonprofit health care plan.
- C.G.A. 33-20-21 requires that health care corporations must submit their payment rates rendered to providers of health care services to the Commissioner of Insurance, who must give prior approval on the basis of whether they are fair and reasonable.
- C.G.A. 33-20-34 in order for a non-profit healthcare corporation to convert into a for-profit entity, they must submit a plan to the Commissioner of such conversion, who will approve the change in structure if it is in the “best interest of the company, its policyholders, and the general public.”
- C.G.A. 33-57-3 et seq. creates a Consumer’s Insurance Advocate within the Governor’s Office of Consumer Affairs. The Advocate is a licensed attorney whose duties include reviewing rate information submitted to the Insurance Commissioner for the purposes of determining whether insurance rates are excessive, inadequate, or unfairly discriminatory.
FY 2018 BUDGET
Georgia’s budget is set for a fiscal year, starting on July 1 and continuing through the next June 30. Georgia enacted its FY 2018 Budget during the 2017 regular legislative session. To view Georgia’s FY 2018 Budget, click here.
- On September 5, 2014 the FTC announced that it was withdrawing its acceptance of the consent agreement reached in the August 2013 settlement with the Hospital Authority of Albany-Dougherty County and Phoebe Putney Health System following a merger challenge by the FTC that had gone all the way to the U.S. Supreme Court. In April 2011, the FTC challenged the acquisition as having anticompetitive effects and alleging that Phoebe had structured the deal to improperly take advantage of the state action doctrine. On June 27, 2011 the district court dismissed the FTC’s complaint, ruling that Phoebe Putney was immune from antitrust liability under the state action doctrine. The Eleventh Circuit affirmed. The Supreme Court reversed, ruling that the state of Georgia has no clearly articulated a policy that allows hospital authorities to make acquisitions that substantially lessen competition, after which the parties settled. Find the FTC case summary and related documents here.