1. Regional Coalition

STEP 1: Reform the Insurance Marketplace 
The Regional Health Coalition could be contiguous regional states with sufficiently consistent individual and group insurance administrative and coverage mandates. The states would agree to a new policy approval process for individual and group applications using common requirments acceptable to all participating coalition states. In addition, other states from around the country have shown interest in participating in a coalition with common standards.
The Regional Coalition legislation will make Georgia and the additional state Coalition partners a much more attractive market for new products, new insurers, and increased competition.  This legisltagtion would quadruple the market potential. 
OVERALL IMPACT: There are many beneficial market changing benefits that flow from increased competition and a Regional Health Coalition:
    1. Insurer administrative savings - at least 2-3% of the develpment and maintenance costs of introducting a new product (Normal administrative expenses are 10-15%).
    2. Marketing savings - common marketing and sales materials will save 1-2%. (Normal non-commission marketing expenses are 5-8%)
    3. Increased competition - will expand the marketing and sales of more cost effective products. (e.g. HSA eligible plan sales range from 2.4 % in Mississippi to 14.9% of market share in Minnesota. Georgia HSA marketshare is 5.8%)
    4. Increased competition - will lower prices. (e.g in Minnesota the average monthly HSA eligible plan premium is $523, in Georgia the average HSA eligible plan premium is $730).
Premiums would be 28% lower if Georgia had HSA eligible plan premiums the same as Minnesota
This legislation was introduced as Senate Bill SB471 during the 2012 General Assembly.  See attached for actual legialatve language ready to file in 2013.
Ronald Bachman,
Feb 28, 2012, 6:28 AM
Ronald Bachman,
Feb 20, 2012, 3:19 PM