5a. Charity Care FAQ

IMPACT:  A 2008 study by the State of Georgia (in a fiscal note) showed that the Georgia Charity Health Care Network saved the state $200-400 million.
The tax credit would allow for expansion and other improvements in delivering primary and other medical services to the uninsured. The reform legislation support is a free market voluntary insurance market.  In a voluntary market some citizens may not qualify for government programs (Medicaid or kids PeachCare) and others may not be able to afford or want insurance. The Charity care Clinics are voluntary community solutions to meeting the needs of neighbors.  This is the most cost effective way to lower emergency room use and improve care for all Georgians.
Q1. What is a Charity Healthcare Network?
A1. A Charity Health Care Network is a non-profit corporation supporting charity healthcare clinics providing servicves to the uninsured and qualified as exempt from federal income taxation under Section 501(c) of the Inrenal Revenue Code and approved by the Department of Public Health.
Q2.  Would the individual clinics recieve the tax credits directly?
A2. No, to maintain their faith-based principles the individual clinics would not receive the fund directly.  A coordinating association or clinic membership organization working across the state would recieve the funding.
Q3. What is the tax credit amount?
A3. The tax credit is $1,000 per tax year for an individual, and $2,500 for a married couple.  A corporation or other entity can contribute up to 75% of the corporations Georgia income tax liability.
Q4. Does the Tax Credit Have an aggregate and annual limit?
A4. Yes, the annual limit is $2 million for 3 years - an aggregate limit of $6 million. 
Q5. Does the Tax Credit have a sunset provision?
A5. Yes, the provision begins January 1, 2013.  The annual credit amount ends after 3 years with any unused amounts carrying forward until 2018. On December 31, 2018 any unused aggregate tax credits will expire and the program ends.
Q6. Why does the Georgia Health Reform legislation include this tax credit?
 A6.  The reform legislation is for all Georgians.  Since the reform is not a state mandate for everyone to buy insurance, there will remain at least 600,000 uninsured Georgians.  Georgia has about 100 existing Charitable Care Clinics providing services to the uninsured.  They provide mainly primary care services to help maintain a health overall population.  Untreated uninsured individuals can colds, flu's and other illnesses across the community.  Good primary care keeps individuals out of hospital emergency departments. The professional services provided in the Charuty Care Clinics are performed voluntarily without compensation by licensed physicians, nurses, and other medical providers. entirely free and voluntary.  The Georgia Charity Care Network has been proven to save the state of Georgia $200-400 million per year.
Q7. What would the Tax Credit funding be used for?
A7.  The Charity Health Care Tax Credit could be used for reaching the uninsured across the entire state. Many areas of rural Georgia would like to create Charity Clinics, but need additional funding to reach the populations in need.  The funds could be used for planning, expansion, development, outreach and technolgy support.