Surprise medical billing measure clears Georgia House panel

Georgia Rep. Mark Newton

ATLANTA – The Georgia House of Representatives is putting forth its own version of “surprise billing” legislation.

A committee the House formed last year to explore ways to increase access to quality health care passed a bill Monday to set up a rating system Georgians could use to determine which physician specialty groups in their insurance plan’s provider network serve a given hospital.

The measure would apply to anesthesiologists, pathologists, radiologists and emergency room doctors, typically specialists responsible for the most incidents of surprise billing, the extra hospital charges that result from procedures performed by out-of-network specialists.

The legislation would strike a blow for transparency in the delivery of health-care services, said Rep. Mark Newton, R-Augusta, the committee’s chairman and the bill’s chief sponsor.

“If I want to have elective surgery … I don’t know if the anesthesiologist at my hospital is in my network,” he said. “I have no way to find out.”

Under the House bill, when an insurance company advertises a hospital as in its coverage network, the insurer would be required to disclose that hospital’s “surprise bill rating.” If the hospital’s rating is less than four, the insurer would have to disclose which of the four types of specialties are not in its network.

Kathleen Polvino, legal counsel for the Tifton-based Georgia Alliance of Community Hospitals, said the organization supports greater transparency in hospital billing. But she said the proposed rating system could cause confusion among patients, who might interpret a rating of less than four as a negative mark on a hospital.

“Patients might not know what it means,” she said. “We don’t want it to look like a hospital has failed.”

Newton responded that the proposed rating is meant to apply to insurance plans rather than hospitals.

“It will bring a spotlight of transparency on health plans,” he said.

Rep. Spencer Frye, D-Athens, the only committee member to vote against the bill, said he doesn’t believe it goes far enough.

“If we’re going to tackle this, we should be reining in these out-of-control insurance companies,” he said.

A Senate bill on surprise billing, in fact, would go further than the House measure. The legislation, sponsored by Sen. Chuck Hufstetler, R-Rome, would essentially prohibit the practice. Disputes between insurance companies and medical providers would be subject to arbitration conducted by the state Office of Insurance.

The Senate bill is pending before the Senate Insurance and Labor Committee. The House legislation needs only to clear the House Rules Committee, the chamber’s traffic cop for bills, before heading to the House floor.

Perdue holding solid fund-raising lead over Democrats

U.S. Sen. David Perdue

ATLANTA – U.S. Sen. David Perdue, R-Ga., entered this year with a huge fund-raising lead over three Democrats looking to challenge his bid for a second term.

Perdue raised nearly $1.9 million during the last three months of 2019, giving him a campaign war chest of more than $7.8 million at the end of the year, according to a report filed with the Federal Election Commission late Friday.

Documentary filmmaker Jon Ossoff, who lost in a special election for Georgia’s 6th Congressional District seat three years ago, is the Democrats’ top fund-raiser. His campaign brought in about $1 million during the fourth quarter and entered January with almost $1.5 million cash on hand.

Former Columbus Mayor Teresa Tomlinson raised $532,462 during October, November and December, and reported $319,044 in her campaign treasury of as Dec. 31.

Sarah Riggs Amico, a Cobb County businesswoman who lost to Republican Geoff Duncan in the 2018 race for lieutenant governor, raised $502,642 during the last quarter of 2019 – including a $365,000 loan she made to her campaign. Amico listed $472,406 cash on hand at the end of December.

Clarkston Mayor Ted Terry recently dropped out of the race for the Democratic nomination to take on Perdue.

The fund-raising picture in Georgia’s other U.S. Senate contest is less clear because other major candidates vying to unseat recently appointed Sen. Kelly Loeffler, R-Ga., just entered the fray and didn’t have to file fourth-quarter reports.

Loeffler, however, is off to a good start defending the seat she took up early last month following her appointment by Gov. Brian Kemp to succeed retired GOP Sen. Johnny Isakson.

Fulfilling a pledge to jump-start her campaign with her own money, the wealthy Atlanta businesswoman put up $5 million. Combined with $459,701 in contributions from individual donors and political action committees, Loeffler reported almost $5.5 million in her campaign treasury.

Democrat Raphael Warnock, pastor of Atlanta’s historic Ebenezer Baptist Church, and U.S. Rep. Doug Collins, R-Gainesville, are new to the contest and won’t have to file campaign-finance disclosures until after the first quarter of this year.

A Democrat who entered the race last fall, Matt Lieberman, son of former U.S. Sen. Joe Lieberman of Connecticut, raised $702,326 in October, November and December. Lieberman reported $369,812 cash on hand as of Dec. 31.

Georgia’s tight budget could yield tobacco tax hike

ATLANTA – After years of failing to gain traction in the General Assembly, efforts to raise Georgia’s tobacco tax could get a boost this year from the budget crunch facing state lawmakers.

The legislature passed a bill early in the 2020 session to tax online purchases made through such “marketplace facilitators” as Amazon and Google. Supporters cited the need for more revenue to help offset sluggish state tax collections threatening to force painful spending cuts.

The revenue grab could move next to tobacco products. Legislation before the Georgia House of Representatives would increase the state’s tobacco tax, the nation’s third lowest, from 37 cents per pack of cigarettes to $1.87.

That higher rate, which would move Georgia’s tobacco tax above the national average, would generate $425.2 million a year in new revenue for the state, said Andy Freeman, government relations director for the Atlanta-based American Cancer Society’s Cancer Action Network.

“Resolving the budget deficit and addressing the highest tobacco use rate in 20 years … would mark a major health and fiscal win for our state,” Freeman said.

Rep. Ron Stephens, R-Savannah, the bill’s sponsor, said reducing demand for tobacco products by raising the tax also would yield huge savings.

“We’re spending half a billion dollars a year in Georgia to treat smoking-related illnesses,” Stephens said. “That’s coming out of taxpayers.”

A recent poll conducted by the Georgia Budget and Policy Institute found 80% support among voters for increasing tobacco taxes.

Charles Bullock, a political science professor at the University of Georgia, said the tobacco industry doesn’t enjoy the political influence it once had in the Peach State when more farmers grew the crop and tobacco auctions in rural communities drew large crowds.

“Tobacco has lost its clout. Rural Georgia has lost its clout,” he said. “With each census, more [legislative] seats get shifted out of rural Georgia to metro Atlanta.”

Bullock said the tight budget is another factor building support for raising tobacco taxes.

“A number of legislators seem to be trying to push back against [Gov. Brian Kemp’s] cuts,” Bullock said. “They’re thinking, ‘If we can find more revenues, we can protect programs we feel are important.’ ”

But Rep. Bret Harrell, chairman of the tax-writing House Ways and Means Committee, said he doesn’t believe there will be enough support in the General Assembly this year to raise the tobacco tax.

“There is demand for the product and retailers who sell the product, and it’s legal,” said Harrell, R-Snellville.

But Harrell doesn’t oppose increase tobacco taxes under any circumstances. He put together a proposal two years ago to raise the state tax on cigarettes to 62 cents per pack, based on the tobacco tax rates in neighboring states.

“It would not unduly advantage or disadvantage our border retailers,” he said.

But Harrell said the only tobacco tax bill lawmakers are likely to pass this year would impose an excise tax on vaping and e-cigarettes. Georgia has no excise tax on those products now, and the rapid growth of vaping is driving an increase in nicotine use that had been on the decline.

Rep. Bonnie Rich, R-Suwanee, has introduced a bill that would tax vapor devices and consumable vapor products at 7%.

Bullock said there’s a good reason a tax on vaping might find favor with the politicians under the Gold Dome.

“Vaping is much more of a young people’s pursuit,” he said. “Young people don’t vote.”

AT A GLANCE

Georgia’s tobacco tax is the third lowest in the nation:

State           Cigarette tax per pack

Missouri    $0.17

Virginia      $0.30

GEORGIA   $0.37

North Dakota     $0.44

North Carolina    $0.45

Idaho          $0.57

South Carolina    $0.57

Kentucky    $0.60

Wyoming   $0.60

Tennessee $0.62

Source: Tax Foundation

Georgia Freight & Logistics panel seeking more time to finish its work

ATLANTA – Georgia lawmakers want more time to figure out how to raise more money to improve the state’s freight rail network.

The state House Transportation Committee passed a resolution Thursday that would extend the life of the Georgia Freight & Logistics Commission until the end of this year. The General Assembly created the panel of legislators and logistics industry executives during last year’s session and gave it until the end of December to make recommendations.

A seven-page report the commission released Thursday included a set of “action items” Georgia transportation policy makers need to address but that need more time to accomplish.

“The commission did a good job identifying issues and problems,” said Rep. Kevin Tanner, R-Dawsonville, the commission’s co-chairman, who also chairs the House Transportation Committee. “That’s the easy part. Now, we’ve got to find solutions.”

A key reason legislative leaders created the Freight & Logistics Commission was to look for ways to increase the role rail plays in moving freight across Georgia. Currently, only 27% of the state’s freight moves by rail.

“Anything we can do to help move freight to our rail network is going to help with our traffic,” Tanner said.

One of the commission’s recommendations calls for legislation that would set aside a line item in the state budget for funding of freight rail projects. The proposal would not guarantee revenue for freight rail, which would remain subject to the annual appropriations process.

On Thursday, the House Transportation Committee approved a bill that would do just that.

The commission also identified a shortage of truck drivers for companies including Kia Motors and Shaw Industries as an obstacle to the smooth movement of freight, as well as a need to make more truck parking spaces available for drivers to stop and rest.

The panel also documented a huge gap in funding for freight rail in Georgia, with a 30-year unmet need ranging from $103.9 billion to $121.5 billion. The report suggested one way to lessen the gap would be exploring public-private partnerships.

Both the resolution to extend the commission’s work through this year and the bill setting up a budget line item for freight rail funding now move to the House Rules Committee, the final step to put the measures before the full House.

Coastal Georgia senator wants closer look at mine project near Okefenokee Swamp

Okefenokee National Wildlife Refuge

ATLANTA – A state senator from coastal Georgia is calling for a closer examination of the potential impacts of a planned titanium mine near the Okefenokee National Wildlife Refuge.

In a letter dated Jan. 27, Sen. William Ligon, R-Brunswick, suggested the U.S. Army Corps of Engineers conduct more studies on how mining a 12,000-acre site south of the refuge in Charlton County and post-mine restoration would alter surface water and groundwater flows before awarding a permit to Alabama-based Twin Pines Minerals.

“Science must guide decisions that affect our swamp and the national wildlife refuge,” Ligon wrote in the letter to Col. Daniel Hibner from the Corps’ Savannah district. “These studies … must demonstrate, beyond a reasonable doubt, that no harm will come to the swamp as a result of Twin Pines’ mining operations. Our state cannot risk lasting damage to the national treasure that is the Okefenokee Swamp.”

Ligon noted in the letter that the Okefenokee National Wildlife Refuge draws more than 600,000 visitors each year. The Okefenokee is the largest blackwater swamp in North America.

The Georgia Conservancy complained last August the proposed mine would go an average of 50 feet below the surface, deep enough to impact adjacent wetlands and permanently affect the hydrology of the entire 438,000-acre swamp.

The U.S. Environmental Protection Agency, U.S. Fish and Wildlife Service and the Georgia Environmental Protection Division also have expressed concerns about the project.