This is the time of year when many of us will learn from our employers how much more it will cost to retain health insurance next year. From premiums to co-pays to out-of-pocket expenses and deductibles, costs are expected to continue to climb for each of us, thanks to Obamacare.
However, the financial burden on Georgia taxpayers is also about to hit and the bill is a whopper. According to new analysis by the state Department of Community Health, Obamacare is projected to cost Georgia taxpayers more than $540 million just over the next two-and-a-half years. That's more than half-a-billion dollars in increased compliance costs imposed on the state's insurance plans for state employees, Peachcare for Kids, and other impacts to the cost of Medicaid. Even though Governor Nathan Deal and the General Assembly have consistently opposed Medicaid expansion in Georgia, taxpayers will still be on the hook for the increased costs of complying with Obamacare.
Healthcare is going to continue to consume more and more of our state budget. If we are serious about controlling healthcare costs for taxpayers — and the private sector — we need to find a state-based solution to create our own savings. Obamacare is not going to reduce costs, so Georgia lawmakers must find a route to make healthcare less expensive.
Last winter, I introduced a proposal that I will bring to the General Assembly in early 2015. It would reduce healthcare costs for state taxpayers by nearly $7 billion over 10 years. The savings would come from Medicaid and the health plans that cover state employees, teachers and their dependents. That proposal is known as the Patients' Compensation System (PCS), and it would significantly reduce the practice of defensive medicine in Georgia that drives up healthcare costs. Gallup reports that one in four healthcare dollars are wasted on unnecessary tests and procedures that physicians order that are not clinically necessary. Instead, doctors order these procedures to keep from being sued.
Under the PCS solution, doctors and hospitals would no longer be sued again. If a patient is injured, they would take their claim to an administrative system overseen by a panel of healthcare experts. If the panel determined a physician had not followed best practices and a patient had been injured, compensation would be promptly awarded.
This concept would not only save the Georgia state treasury but also put savings in all of our pockets. If enacted, it would save Georgia employers between $15 billion and $31 billion over 10 years in health insurance costs.
Our economy is starting to show signs of new growth, but it can quickly be stifled with astounding increases in healthcare costs. The idea to eliminate Georgia's medical liability system and replace it with a no-blame, administrative model would do what Obamacare didn't do: reduce healthcare costs and at the same time compensate patients who have been neglected by our broken malpractice system.