Georgia Governor Announces Plan To Subsidize Health Insurance To Small Businesses, Employees

Main Category: Health Insurance / Medical Insurance
Article Date: 13 Aug 2007 - 5:00 PDT

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Georgia Gov. Sonny Perdue (R) on Tuesday announced a proposal that would subsidize health insurance for some small businesses and their employees, the Atlanta Journal-Constitution reports. Under the plan, called the Health Insurance Partnership for Georgia, the state would spend $50 million in state and federal funds to provide health insurance to employees with annual incomes less than 300% of the federal poverty level. Businesses with fewer than 50 employees would qualify under the program.

Employees could choose to join the health insurance program offered to state employees; a cheaper, more basic plan; or a high-deductible plan with a health savings account. Joining the program would be voluntary for businesses. Participating businesses would pay a portion of the bill, as would employees through premiums. Perdue said that the plan would not allow businesses to drop their existing coverage to join the state-provided insurance. The details of the plan will be completed in the next several months, Perdue said.

The proposal requires funding approval from the state Legislature, "where it is sure to face close scrutiny," according to the Journal-Constitution. About 380,000 of the state's uninsured residents work for small businesses and have incomes below 300% of the poverty level. Perdue said that the plan "will provide affordable insurance options to Georgia's mom-and-pop shops, beauty salons, bakeries, hardware stores and a myriad of other businesses" (Salzer/Schneider, Atlanta Journal-Constitution, 8/7).

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