Georgia Senate Passes Bill to Expand Health Freedom

georgia tac health freedomBy Michael Maharrey

Last week, the Georgia Senate unanimously passed a bill that would help facilitate healthcare freedom in the state.

A coalition of six Republican senators sponsor Senate Bill 50 (SB50). Titled the “Direct Primary Care Act,” the legislation specifies that direct primary care agreements (sometimes called medical retainer agreements) do not constitute insurance, thereby freeing doctors and patients from the onerous requirements and regulations under the state insurance code. It also stipulates that a physician offering, marketing, selling, or entering into a direct primary care agreement shall not be required to obtain a certificate of authority or license other than to maintain a current license to practice medicine with the State of Georgia.

The bill defines what constitutes a direct primary care agreement.

SB50 passed the Senate by a 49-0 vote on Feb. 21.

According to Michigan Capitol Confidential, by removing a third party payer from the equation, medical retainer agreements help both physicians and patients minimize costs. Jack Spencer writes:

Under medical retainer agreements, patients make monthly payments to a physician who in return agrees to provide a menu of routine services at no extra charge. Because no insurance company stands between patient and doctor, the hassles and expense of bureaucratic red tape are eliminated, which have resulted in dramatic cost reductions. Routine primary care services (and the bureaucracy required to reimburse them) are estimated to consume 40 cents out of every dollar spent on insurance policies, so lower premiums for a given amount of coverage are another potential benefit.


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This represents the kind of cost control Obamacare promised, but failed to deliver.

Under Obamacare, regulations define such programs as a primary care service and not a health insurance plan, and current IRS policy treats these monthly fee arrangements just like another health plan.

A FIRST STEP

At this point, it remains unclear whether Congress will actually send President-elect Trump a bill to repeal Obamacare. If so, will it be a complete or just a partial repeal? Regardless, state actions can help completely bring down the Affordable Care Act.

Oftentimes, supporters of Obamacare criticize opponents for not having any alternative. Direct primary care offers one.

These direct patient/doctor agreements allow a system uncontrolled by government regulations to develop. It makes doctors responsive to patients, not insurance company bureaucrats or government rule-makers. Allowing patients to contract directly with doctors via medical retainer agreements opens the market. Under such agreements, market forces will set price for services based on both demand instead of relying on central planners with a political agenda. The end-result will be better care delivered at a lower cost.

By incentivizing creative healthcare solutions, the market will naturally provide better options, such as the Surgery Center of Oklahoma, This facility operates completely outside of the insurance system, providing a low-cost alternative for many surgical procedures.

A more open healthcare marketplace within a state will help spur de facto nullification the federal program by providing an affordable alternative. As patients flock to these arrangements and others spurred by ingenuity and market forces, the old system will begin to crumble.

Passage of SB50 would represent a first step toward healthcare freedom in Georgia, and would create a stepping stone to further action to nullify the onerous Affordable Care Act. Once in place, Georgians can take further steps to fully extricate themselves from Obamacare for good.

For more information on a plan to nullify the PPACA, click HERE.

NEXT

SB50 moves to the House for further consideration. It was referred to the House Insurance Committee where it must pass by a majority vote before moving to the full House.

Michael Maharrey [send him email] is the Communications Director for the Tenth Amendment Center, where this article first appeared. He proudly resides in the original home of the Principles of ’98 – Kentucky. See his blog archive here and his article archive here. He is the author of the book, Our Last Hope: Rediscovering the Lost Path to Liberty. You can visit his personal website at MichaelMaharrey.com and like him on Facebook HERE

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