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House Bill 242
Chair's Name: Larry O'Neal
Committee: Ways & Means
House Sponsor: Tom Knox
HB 242 provides that insurers could claim an exemption from certain insurance premium taxes on premiums paid for high deductible health plans. It also excludes from individual taxpayers' taxable net income high deductible health plan premiums paid. These provisions would apply to all taxable years beginning on and after January 1, 2008.
This bill received a Do Pass recommendation from the Ways & Means Committee and came to the House Floor under the Structured Rule.
Chairman O'Neal's opinion of this legislation:
WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?
HB 242 provides insurers with an exemption from state premium taxes equal to 2.25 percent of the premiums collected from Georgia residents for high deductible health plans sold or maintained in connection with health savings accounts, and also provides for an income tax deduction for the individual taxpayer for 100% of the premium paid for high deductible health plans established and used with a health savings account.
WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?
This bill addresses the lack of availability of affordable insurance products in the health insurance market.
THIS LEGISLATION:
- Reduces the Size of Government:
If more affordable, private insurance will be available and purchased and there will be diminished demand and reliance on government provided healthcare.
- Strengthens the Traditional Family Structure
Encourages individuals and families to take responsibility for their own healthcare costs.
- Reduces the Tax Burden on our Citizens:
Individuals will have a deduction for 100% of the premiums paid for high deductible health plans used with health savings accounts, and insurance providers will be induced by the premium tax decrease to provide affordable health insurance.
- Increases Personal Responsibility:
Individuals and small businesses will be encouraged to provide their own health insurance from their own resources.
Insurance companies will have incentive to market a product that is not well understood and/or well known by citizens who want to be responsible for their own healthcare costs.
The Senate made no further changes.
House Vote: 177-44
Senate Vote: 48-3 |
