House Bill 977

Chair's Name: Larry O’Neal

Committee: Ways & Means

House Sponsor: Tom Knox

Chairman O’Neal’s Opinion of the legislation:

HB 977 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.

This Legislation:

• Reduces the Size of Government because, if more affordable, the availability of private insurance should diminish demand and reliance on expensive government provided healthcare. 
• Strengthens our Traditional Family Structure by encouraging individuals and families to take responsibility for their own healthcare costs.
• Reduces the Tax Burden on our Citizens because 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.  Currently many individuals do not get after-tax treatment of health insurance premiums like employees of large companies.
• Increases Personal Responsibility because individuals and small businesses will be encouraged to provide their own health insurance from their own resources.
• Other: 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, hopefully to induce market driven healthcare decisions thus universally lowering out of control healthcare costs.

This bill comes to the Floor under the Structured Rule.