(The Center Square) – Georgia’s new state-based insurance exchange is keeping money in the state and giving consumers more choices, Insurance Commissioner John King said.
Georgians who purchased insurance through the Affordable Care Act last year will now use Georgia Access, the first-of-its-kind state-based exchange.
The program’s impetus came in 2019 when Gov. Brian Kemp signed the “Patients First Act.” The state was facing problems with the Affordable Care Act, including the lack of providers. In some rural areas, Georgians only had only one choice.
The U.S. Department of Health signed a waiver that allows the state to pursue solutions to its health care challenges.
Georgia Access debuts Friday after a year-long test conducted with the Centers for Medicare and Medicaid Services.
“For the last year, we’ve seen a tremendous amount of people, we are getting close to 1.4 million people who have signed up for private health going through Georgia Access,” King said in an interview with The Center Square. “The reason is that you have people who are knowledgeable. We go to the communities. Our marketing plan is to go to the places were people are gathering, not expect somebody to just go to one website and try to figure it out.”
For the taxpayer, the switch keeps more money in the state.
“So many of the fees that were being generated from Georgia were going to Washington to pay for part of the ACA and Georgia wasn’t getting a lot of that money back,” King said. “It was being distributed across the nation. And so this was a strategy of keeping the burden off of the taxpayer and the fee generated off this marketplace solution will stay in Georgia, will fund the reinsurance bucket which reduces the rates for insurance companies and brings competition across the state.”
The program has not been without its critics. The majority of the comments made to the Centers for Medicare and Medicaid Services were from residents asking the agency to block the plan. King said the federal government was reluctant at first but, over the past year, has been a partner in helping the state get the program off the ground successfully.
“We’ve seen in rural areas, reinsurance costs drop between 15 and 17% because we have additional competition in those districts,” King said.
The number of insurance carriers doubled since 2019, according to information from King’s office.
“This is a great milestone in connecting Georgians with the coverage they need,” Kemp said in a statement about the program’s launch. “A state-based exchange will not only make the process for Georgians getting covered easier, but will also increase their coverage options and our ability to promote quality and affordable health plans.
The insurance commissioner’s office created a website that allowed Georgians to look at plans before open enrollment begins on Friday.
