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ALLISON WALL FOR QUESTIONS is OUTSPOKEN EXECUTIVE DIRECTOR REGARDING In 2008, Georgia Watch employees have DANNY ORROCK POLICY made consumer presentations to: COORDINATOR • Ellis Realty in Columbus HOLLY LANG CONTACT US BY • ACORN foreclosure summit in Atlanta COMMUNICATIONS • Council on Aging at Clayton State COORDINATOR PHONE AT University NATHAN GAFFNEY (866) 33-WATCH • Various legislative committees on COURT WATCH FELLOW OR BY EMAIL AT JEANNINE LOWERY consumer issues GRASSROOTS GEORGIAWATCH@ You too can book Georgia Watch for a COORDINATOR GEORGIAWATCH.ORG speaking engagement by calling (866) 33-WATCH. theWATCHER www.georgiawatch.org The newsletter of the state' s leading consumer watchdog Vol. IX, SPRING 2008 TAKE A LOOK AT PHOEBE PUTNEY MEMORIAL HOSPITAL CHANGES IN CAR BY HOLLY LANG INSURANCE COVERAGE In November, Georgia Watch released a BY DANNY ORROCK detailed report on the finances of southwest Georgia’s largest hospital, Phoebe Putney Earlier this year, state lawmakers Memorial Hospital. passed a bill that makes major changes to car insurance. Phoebe Putney is located in Albany and serves the country’s ninth poorest Senate Bill 276, sponsored by congressional district, where nearly 30 Sen. Cecil Staton (R-Macon), percent of all residents live below the gives consumers the choice • Health care costs average about $7,630 poverty level. per employee in three key Albany industries to purchase uninsured/ – a figure approximately $1,400 higher underinsured motorist (UM) According to research by Harvard than in other parts of the country for these insurance that stacks on top of University, approximately half of all companies. the insurance policy of an at-fault Americans who file for bankruptcy in driver. the United States do so because of medical bills. Three-quarters of those • Phoebe Putney has provided large, low- patients had health insurance at the interest loans to its doctors and executives. In case you are hit by someone time of illness or injury. Between 2002 and 2005, Phoebe Putney who doesn’t have enough extended approximately $1,074,696 in insurance to pay for your medical But inside the hospital, six figure salaries low-interest loans to a number of key bills and property damage, UM are common for executives, who also employees. coverage would kick in to help enjoy generous benefits and perks, such cover your costs. as extravagant trips abroad and weekend • CEO Joel Wernick, for example, received a trips to the beach that cost far more than loan for at least $100,000 the same year that Currently, any money that you the average Albany resident’s income. Phoebe Putney sued 176 patients for debt receive from the at-fault driver’s amounts ranging from $100 to $5,000. insurance company would According to our report: reduce the amount of money that • Phoebe Putney Memorial Hospital and you could access from your UM • Phoebe Putney marked up prices policy. overall by 252 percent in 2005, and Phoebe Putney Health System had a charges for some services -- such as combined surplus of more than $44.6 million electrocardiology and laboratory work in 2005. By choosing stacking UM – were increased by more than 500 coverage, which will soon be percent. In July 2007, Phoebe CEO Joel Phoebe Putney should utilize these surplus available because of SB 276, this Wernick announced an across the board funds to open a Level 1 trauma center, which reduction of your UM coverage – increase of six percent in the hospital’s would serve an unmet need in southwest called an “offset” – will no longer charges. Georgia. Level 1 trauma centers provide the be allowed. most timely and comprehensive care to the most critical of trauma patients. • Major industries in Albany and Dougherty However, there are certain cases County claim that the area’s health care where UM coverage will be Of the 100 counties in the nation with costs are among the highest in the reduced by other payments, such country for the company, which stifles the highest rates of bankruptcy, 45 are in as when an accident involves a growth and prevents businesses from Georgia. On average, Georgians spend worker’s compensation claim. expanding. $4,891 a year on health care at hospitals and doctor’s offices. CONTINUED ON PAGE 2

1 CHANGES IN CAR INSURANCE TAKE A LOOK AT PHOEBE PUTNEY MEMORIAL HOSPITAL COVERAGE CONTINUED FROM PAGE 1 CONTINUED FROM PAGE 1 CONTINUED ON PAGE 2 the true benefit nonprofit hospitals offer As it stands now, Georgia’s trauma death rate their communities. Once SB 276 goes into effect, you will is approximately 20 percent higher than the • County tax authorities should regularly have three options when buying or national average. assess the property holdings of tax- renewing car insurance: For southwest Georgia residents, the nearest exempt nonprofit hospitals to ensure the Level 1 trauma center is more than 100 miles community is receiving a comparable 1) Stacking uninsured/underinsured away in Macon at the Medical Center of benefit for its loss of property tax motorist (UM) insurance; Central Georgia. revenue. We also recommend that: • Phoebe Putney, for example, is one of 2) UM insurance that would not • Charges and financial assistance options Dougherty County’s largest landowners. “stack” on top of other liability should be fair and clearly explained to Knowing the current value of their tax- coverage; or, patients at the time of admission. exempt status is essential to knowing • State lawmakers should create and enact what Phoebe Putney should give back to 3) No UM insurance at all. definitions for the terms “indigent care,” the community. “charity care” and “bad debt” that are based “A Crisis of Affordable Health Care: Phoebe on cost instead of marked-up charges. This Putney Health System” can be found at www. SB 276 also eliminates the insurance GeorgiaWatch.org. commissioner’s “prior approval” will help state and federal agencies know authority over rate changes on In 2005, Phoebe Putney Memorial Hospital's prices overall were marked up 252 percent over cost, as the hospital paid approximately $298,235,192 for services, materials and car insurance policies above and procedures, but charged $752,273,508. beyond the minimum limits required by state law. Radiology- Diagnostic In most cases, an insurance company Charge will not have to get approval from the Electrocardiology Cost

commissioner before charging new Laboratory rates, which would become effective immediately upon filing. Anesthesiology

Medical Supplies That said, the commissioner still has authority to reject rate changes Prescriptions

– increases and decreases – for the 0 50,000,000 100,000,000 150,000,000 200,000,000 first 45 days after the new rates have Note: All numbers are in millions, and were provided to the US Centers for Medicare and Medicaid Services by Phoebe been put into effect; rate changes for Putney for Fiscal Year 2005. For electrocadiology services, the cost to Phoebe was approximately $862,522, which doesn't register on the chart above. policies with minimum limits would still be approved by the insurance ANDY LORD HIRED AS ADVOCATE FOR GEORGIA WATCH commissioner before going into BY HOLLY LANG effect. Born and raised in before the 2008 General Assembly. Atlanta, lobbyist Andy There is no shortage of companies Lord began working in To Lord, government relations doesn’t just selling car insurance in Georgia, government relations after start and stop with the General Assembly. and SB 276 may eventually lead to spearheading a statewide Instead, Lord sees his job as one that is lower prices for consumers, new health coalition with help year-round because the opportunities to insurance products rolled out faster, ANDY LORD from many elected officials work with lawmakers don’t stop when the and may make the market even more under the Gold Dome. session ends. competitive. Only time will tell. During this time, Lord discovered an affinity Lord tends to work with smaller teams with As a service to our readers, Georgia and skill for working with state lawmakers more modest budgets than most lobbyists Watch has compiled the 2008 to help pass legislation that benefits the at the Capitol, and he sees some of the House and Senate votes to pass community at large. work he does as akin to the biblical tale of SB 276. If you have any questions, David versus Goliath. please contact Policy Coordinator Since then, Lord has worked with a Danny Orrock at (404)525-1084 or variety of nonprofit groups, including “They outnumber us every year. They [email protected]. the American Cancer Society, where outspend us every year, and we beat them he served as government relations every year,” Lord said. “It’s because we are VOTES ON PAGE 4 director from 2001 to 2006. He joined smart, it’s because we have grassroots, and the Georgia Watch policy team shortly it’s because we are right.”

2 MRSA AWARENESS MONTH FROM THE DIRECTOR’S CHAIR BY HOLLY LANG March was MRSA awareness month, an event THE YEAR OF THE CONSUMER aimed at raising public awareness about the BY ALLISON WALL – EXECUTIVE DIRECTOR dangerous and destructive bacteria, “Methicillin- resistant Staphylococcus aureus” or MRSA. For all the pre- Under Georgia law, car title lenders can game hype that this repossess a pawned car if a loan goes MRSA is a strain of a common infection-causing legislative session was bad, and sell it to settle the loan debt bacterium that has become resistant to treatment only about water, taxes and other costs. After the debt is settled, by the antibiotic methicillin, which makes it a and transportation, some lenders pocket the extra money serious hazard in health care facilities. perhaps by some the made off the sale, but Golick calls that 2008 Georgia General “unjust enrichment.” In 2005, MRSA was associated with 18,650 hospital-related deaths in the US alone. Hospital Assembly will also be infections are one of the top ten leading causes known as the year of His bill would have guaranteed that of death in the U.S. and significantly increase the the consumer. car title lenders are paid what they are cost of health care. due, but would have given the leftovers After all, we finally have a low-cost credit back to the borrower, who could use the Often called a “superbug,” many people who are freeze law on the books - after three years money to purchase another car. infected with MRSA have pus-filled boils and, of committee hearings. occasionally, rashes. Approximately 43 percent of Rep. Rob Teilhet (D-Smyrna) all skin infections in the US are the result of one Plus, we now have a better lemon law for Rep. Teilhet co-sponsored both the car single – and preventable – strain of MRSA. car buyers. And bi-partisan, pro-consumer title bill and the credit freeze amendment, • The Association for Professionals in Infection bills were filed to add a consumer member and sponsored another bill that would Control & Epidemiology reports that 1.2 million to the state medical board, and restore require more plain language disclosure hospital patients are infected with dangerous, some fairness to the car title loan and tax from tax preparers, such as H&R Block, drug-resistant staph infections each year. refund loan industries. who aggressively market high-interest loans on tax refunds. • According to the Centers for Disease Control Oh, did I mention that the payday lenders and Prevention, one in 20 patients – about two weren’t able to find a single sponsor for These are loans secured by your million a year – contract an infection while in the a bill to repeal the statewide ban on their anticipated tax refund, but some tax hospital. triple-digit interest loans? preparation businesses sell them • Hospital infections killed more than 94,000 US as “rapid refunds” and disguise the patients in 2005 – more than breast cancer, Every legislative session creates new loan terms – including the triple-digit AIDS, and auto accidents combined. opportunities for pro-consumer action, and interest. we can all be a part of those successes – • Hospital infections can increase the length of constituents, advocates and lawmakers. Under Teilhet’s bill, taxpayers who were hospital stays up to 30 days, and cause long- Here are a few of the best ideas that offered a refund loan would have been term affects that persist throughout life. surfaced in 2008, and the champions who given specific information in bolded deserve credit for consumer work well text spelling out the fact that “THIS IS • The cost to the U.S. health system of treating done. A LOAN.” hospitalized patients with staph infections is staggering – between $3.2 billion to $4.2 billion a year. Rep. (R-Jefferson) Well said! There has been a consistent, bi-partisan MRSA is an increasingly prevalent and often deadly effort in the state House to lower the fee Rep. Steve “Thunder” Tumlin infection that is easily preventable. So what can be for a credit freeze so that more Georgians (R-Marietta) done to help curb infection rates? can access this superior protection against Providing back-up support on all three account fraud and identity theft. of these measures, Rep. Tumlin crossed The Institute for Health Care Improvement has the aisle to co-sponsor Rep. Teilhet’s outlined simple and cost-effective strategies, such For a second year, Rep. Benton drew a line disclosure bill on tax refund loans and as hand washing, to help reduce infection-causing in the sand for consumers and sponsored signed on to Rep. Golick’s car title loan bacteria in health care facilities. Since 2004, the campaign has prevented more than 123,000 a winning floor amendment that reduced bill. unnecessary deaths. the fee from $10 to $3. Tumlin has taken some heat in the media, More transparency in the health care market – Rep. (R-Smyrna) in his district and under the Gold Dome including tracking and public reporting of infection A co-sponsor of Rep. Benton’s $3 credit for sponsoring the predatory lenders’ bill rates – is also necessary. freeze amendment, Rep. Golick also to repeal the statewide ban on payday sponsored a pro-consumer bill that would lending last year, but there is no doubt In 2006, South Carolina passed S. 1318, which return to a borrower any money left over that he found his stride in 2008 with a requires hospitals to report their infection rates from the sale of a repossessed vehicle. string of consumer wins. to the state government and the general public. Nineteen other states have passed or are considering similar measures. Bravo!

3

SB 276 final passage votes on March 6, 2008

Key: Y: Voted Yea N: Voted Nay E: Excused, did not vote X: Did not vote P: Presiding, only votes in case of a tie

Dist. Representative Party City Vote Roberta Abdul- 74 Salaam D Riverdale Y 84 Stacey Abrams D Atlanta Y 9 Amos Amerson R Dahlonega Y 56 Kathy Ashe D Atlanta Y 166 Terry Barnard R Glennville Y 68 Tim Bearden R Villa Rica Y Sharon Beasley- 65 Teague D Red Oak Y Stephanie 85 Benfield D Atlanta Y 31 Tommy Benton R Jefferson Y 174 Ellis Black D Valdosta Y 10 Ben Bridges R Cleveland Y 63 Tyrone Brooks D Atlanta N 64 D Atlanta E 160 Bob Bryant D Garden City X 130 D Junction City X 50 Mark Burkhalter R Alpharetta Y 157 Jon Burns R Newington Y 18 Mark Butler R Carrollton N 20 R Woodstock X 159 Amy Carter D Valdosta Y Earl "Buddy" 175 Carter R Pooler Y 103 David Casas R Lilburn X 81 Jill Chambers R Atlanta Y 116 Mickey Channell R Greensboro Y 134 D Americus Y 101 Mike Coan R Lawrenceville Y 125 Jim Cole R Forsyth Y 97 R Duluth E 27 Doug Collins R Gainesville Y 41 R Marietta Y 102 Clay Cox R Lilburn Y 16 Rick Crawford D Cedartown Y 109 Hardie Davis D Gracewood Y 122 Steve Davis R McDonough Y 163 Burke Day R Tybee Island Y 13 R Rome Y 6 Tom Dickson R Cohutta Y 45 R Marietta E 86 D Avondale Est. Y 150 D Albany Y Powder 36 Earl Ehrhart R Sprgs. X 108 R Auburn Y 128 Carl Von Epps D LaGrange Y 106 Melvin Everson R Snellville Y 117 R Harlem Y 99 D Norcross E 147 Johnny Floyd R Cordele Y 66 Virgil Fludd D Fayetteville Y 3 Ron Forster R Ringgold E 43 Bobby Franklin R Marietta Y 123 D Gracewood Y 140 Allen Freeman R Macon Y 57 D Atlanta Y 48 Harry Geisinger R Roswell Y 76 D Ellenwood Y 34 Rich Golick R Smyrna X 162 J. Craig Gordon D Savannah Y 12 Tom Graves R Ranger Y 149 D Cuthbert E 23 Mark Hamilton R Cumming Y 148 Bob Hanner D Parrott Y 118 Ben Harbin R Evans Y 177 J. Mark Hatfield R Waycross Y 104 John W. Heard R Lawrenceville Y 114 Keith Heard D Athens Y 62 Joe Heckstall D East Point Y 67 Bill Hembree R Douglasville Y 87 Michele Henson D Stone Mtn. E 21 Calvin Hill R Woodstock Y 180 Cecily A. Hill R St. Marys Y 61 Bob Holmes D Atlanta Y 112 Doug Holt R Social Circle Y 71 Billy Horne R Newnan Y 170 R Nashville Y Henry "Wayne" 121 Howard D Augusta Y 124 Sistie Hudson D Sparta X Carolyn Fleming 133 Hugley D Columbus Y 161 D Savannah E 80 Mike Jacobs R Atlanta Y 135 Lynmore James D Montezuma X Jeanette 28 Jamieson D Toccoa Y 8 Charles Jenkins D Blairsville Y 22 Sean Jerguson R Canton Y 75 Celeste Johnson D Jonesboro Y 37 Terry Johnson D Marietta Y 46 Jan Jones R Alpharetta Y 44 D Atlanta Y 77 Darryl Jordan D Riverdale Y 59 D Atlanta Y 179 Jerry Keen R St. Simons I. Y 173 Mike Keown R Coolidge E 126 David Knight R Griffin Y 24 Tom Knox R Cumming Y 158 Bob Lane R Statesboro Y SB 276 final passage votes on March 6, 2008 167 Roger Lane R Darien Y 82 Kevin Levitas D Atlanta Y Key: 15 Jeff Lewis R White Y Y: Voted Yea 54 Edward Lindsey R Atlanta Y N: Voted Nay 142 Jimmy Lord D Sandersville X E: Excused, did not vote Barry X: Did not vote 14 Loudermilk R Cassville Y P: Presiding, only votes in case of a tie 139 D Macon Y 110 John Lunsford R McDonough Y Dist. Representative Party City Vote 127 Billy Maddox R Concord Y Roberta Abdul- 172 Gene Maddox R Cairo Y 74 Salaam D Riverdale Y Randal 84 Stacey Abrams D Atlanta Y 94 Mangham D Decatur X 9 Amos Amerson R Dahlonega Y 32 Judy Manning R Marietta Y 56 Kathy Ashe D Atlanta Y 96 D Duluth Y 166 Terry Barnard R Glennville Y 47 Chuck Martin R Alpharetta Y 68 Tim Bearden R Villa Rica Y Howard R. Sharon Beasley- 17 Maxwell R Dallas Y 65 Teague D Red Oak Y 111 Jeff May R Monroe Y Stephanie 30 Tom McCall R Elberton Y 85 Benfield D Atlanta Y 115 Doug McKillip D Athens Y 31 Tommy Benton R Jefferson Y 5 John Meadows R Calhoun Y 174 Ellis Black D Valdosta Y 79 Fran Millar R Dunwoody X 10 Ben Bridges R Cleveland Y 25 James Mills R Gainesville Y 63 Tyrone Brooks D Atlanta N 88 Billy Mitchell D Stone Mtn. X 64 Roger Bruce D Atlanta E Alisha Thomas 160 Bob Bryant D Garden City X 39 Morgan D Austell Y 130 Debbie Buckner D Junction City X 155 R Vidalia Y 50 Mark Burkhalter R Alpharetta Y 90 D Atlanta Y 157 Jon Burns R Newington Y 95 Robert Mumford R Conyers Y 18 Mark Butler R Carrollton N 120 Quincy Murphy D Augusta Y 20 Charlice Byrd R Woodstock X 1 Jay Neal R LaFayette E 159 Amy Carter D Valdosta Y 69 R LaGrange Y Earl "Buddy" Mary Margaret 175 Carter R Pooler Y 83 Oliver D Decatur Y 103 David Casas R Lilburn X Warner 81 Jill Chambers R Atlanta Y 146 Larry O'Neal R Robins E 116 Mickey Channell R Greensboro Y 141 Bobby Parham D Milledgeville X 134 Mike Cheokas D Americus Y Larry "Butch" 101 Mike Coan R Lawrenceville Y 156 Parrish R Swainsboro Y 125 Jim Cole R Forsyth Y 42 R Marietta Y 97 Brooks Coleman R Duluth E 137 R Macon Y 27 Doug Collins R Gainesville Y 143 Dubose Porter D Dublin Y 41 Sharon Cooper R Marietta Y 29 D Hartwell Y 102 Clay Cox R Lilburn Y 144 R Eastman Y 16 Rick Crawford D Cedartown Y 7 R Blue Ridge Y 109 Hardie Davis D Gracewood Y Peachtree 122 Steve Davis R McDonough Y 72 R City Y 163 Burke Day R Tybee Island Y 138 Nikki Randall D Macon X 13 Katie Dempsey R Rome Y Barbara Massey 6 Tom Dickson R Cohutta Y 11 Reece D Menlo X 45 Matt Dollar R Marietta E 98 Bobby Reese R Sugar Hill Y 86 Karla Drenner D Avondale Est. Y 51 Tom Rice R Norcross Y 150 Winfred Dukes D Albany Y Glenn Powder 19 Richardson R Hiram P 36 Earl Ehrhart R Sprgs. X 154 Jay Roberts R Ocilla Y 108 Terry England R Auburn Y 26 Carl Rogers R Gainseville Y 128 Carl Von Epps D LaGrange Y 171 Richard Royal R Camilla Y 106 Melvin Everson R Snellville Y 152 R Albany Y 117 Barry Fleming R Harlem Y 93 Ron Sailor D Decatur X 99 Hugh Floyd D Norcross E 153 Austin Scott R Tifton Y 147 Johnny Floyd R Cordele Y 2 Martin Scott R Rossville Y 66 Virgil Fludd D Fayetteville Y 136 Tony Sellier R Fort Valley E 3 Ron Forster R Ringgold E 35 R Acworth Y 43 Bobby Franklin R Marietta Y 176 Jay Shaw D Lakeland Y 123 Gloria Frazier D Gracewood Y 105 Donna Sheldon R Dacula Y 140 Allen Freeman R Macon Y 58 Robin Shipp D Atlanta Y 57 Pat Gardner D Atlanta Y 119 Barbara Sims R Augusta Y 48 Harry Geisinger R Roswell Y 169 Chuck Sims R Ambrose Y 76 Mike Glanton D Ellenwood Y Freddie Powell 34 Rich Golick R Smyrna X 151 Sims D Albany Y 162 J. Craig Gordon D Savannah Y Georganna 12 Tom Graves R Ranger Y 60 Sinkfield D Atlanta N 149 Gerald Greene D Cuthbert E 113 Bob Smith R Watkinsville Y 23 Mark Hamilton R Cumming Y Lynn Ratigan 148 Bob Hanner D Parrott Y 70 Smith R Newnan X 118 Ben Harbin R Evans Y 131 Richard Smith R Columbus Y 177 J. Mark Hatfield R Waycross Y 168 Tommy Smith R Nicholls Y 104 John W. Heard R Lawrenceville Y Pine 114 Keith Heard D Athens Y 129 R Mountain Y 62 Joe Heckstall D East Point Y 132 D Columbus Y 67 Bill Hembree R Douglasville Y LaNett Stanley- 87 Michele Henson D Stone Mtn. E 53 Turner D Atlanta X 21 Calvin Hill R Woodstock Y 78 Wade Starr D Jonesboro X 180 Cecily A. Hill R St. Marys Y 164 Ron Stephens R Savannah Y 61 Bob Holmes D Atlanta Y 92 D Atlanta X 112 Doug Holt R Social Circle Y Warner 71 Billy Horne R Newnan Y 145 Willie Talton R Robins Y 170 Penny Houston R Nashville Y 40 Rob Teilhet D Smyrna Y Henry "Wayne" "Able" Mable 121 Howard D Augusta Y 100 Thomas D Atlanta Y 124 Sistie Hudson D Sparta X 55 Brian Thomas D Lilburn Y Carolyn Fleming Steve "Thunder" 133 Hugley D Columbus Y 38 Tumlin R Marietta Y 161 Lester Jackson D Savannah E 107 Len Walker R Loganville Y 80 Mike Jacobs R Atlanta Y 91 Stan Watson D Decatur E 135 Lynmore James D Montezuma X 52 Joe Wilkinson R Sandy Sprgs. Y Jeanette 49 R Atlanta Y 28 Jamieson D Toccoa Y 165 D Midway X 8 Charles Jenkins D Blairsville Y Earnest "Coach" 22 Sean Jerguson R Canton Y 89 Williams D Avondale Est. Y 75 Celeste Johnson D Jonesboro Y 178 Mark Williams R Jesup Y 37 Terry Johnson D Marietta Y 4 Roger Williams R Dalton Y 46 Jan Jones R Alpharetta Y 33 Don Wix D Mableton E 44 Sheila Jones D Atlanta Y 73 John Yates R Griffin Y SB 276 FINAL PASSAGE VOTES FROM PAGE77 2Darryl Jordan D Riverdale Y 59 Margaret Kaiser D Atlanta Y 179 Jerry Keen R St. Simons I. Y

173 Mike Keown R Coolidge E SB 276 final passage votes on March 6, 2008 Dist. Senator Party City Vote 126 David Knight R Griffin Y David 24 Tom Knox R Cumming Y Key: 42 Adelman D Decatur Y 158 Bob Lane R Statesboro Y Y: Voted Yea Don 167 Roger Lane R Darien Y N: Voted Nay 9 Balfour R Snellville Y 82 Kevin Levitas D Atlanta Y E: Excused, did not vote Robert 15 Jeff Lewis R White Y X: Did not vote 26 Brown D Macon Y 54 Edward Lindsey R Atlanta Y P: Presiding, only votes in case of a tie John 142 Jimmy Lord D Sandersville X 11 Bulloch R Ochlocknee E Barry Dist. Representative Party City Vote Gloria S. 14 Loudermilk R Cassville Y Roberta Abdul- 55 Butler D Stone Mtn. Y 139 David Lucas D Macon Y 74 Salaam D Riverdale Y Joseph 110 John Lunsford R McDonough Y 84 Stacey Abrams D Atlanta Y 13 Carter R Tifton Y 127 Billy Maddox R Concord Y 9 Amos Amerson R Dahlonega Y Ronnie 172 Gene Maddox R Cairo Y 56 Kathy Ashe D Atlanta Y 16 Chance R Tyrone Y Randal 166 Terry Barnard R Glennville Y Jeff 94 Mangham D Decatur X 68 Tim Bearden R Villa Rica Y 3 Chapman R Brunswick N 32 Judy Manning R Marietta Y Sharon Beasley- Bill 96 Pedro Marin D Duluth Y 65 Teague D Red Oak Y 46 Cowsert R Athens Y 47 Chuck Martin R Alpharetta Y Stephanie Gail Howard R. 85 Benfield D Atlanta Y 44 Davenport D Jonesboro Y 17 Maxwell R Dallas Y 31 Tommy Benton R Jefferson Y John 111 Jeff May R Monroe Y 174 Ellis Black D Valdosta Y 17 Douglas R Covington Y 30 Tom McCall R Elberton Y 10 Ben Bridges R Cleveland Y Vincent 115 Doug McKillip D Athens Y 63 Tyrone Brooks D Atlanta N 39 Fort D Atlanta Y 5 John Meadows R Calhoun Y 64 Roger Bruce D Atlanta E Gregg 79 Fran Millar R Dunwoody X 160 Bob Bryant D Garden City X 7 Goggans R Douglas N 25 James Mills R Gainesville Y 130 Debbie Buckner D Junction City X Tim 88 Billy Mitchell D Stone Mtn. X 50 Mark Burkhalter R Alpharetta Y 8 Golden D Valdosta Y Alisha Thomas 157 Jon Burns R Newington Y Johnny 39 Morgan D Austell Y 18 Mark Butler R Carrollton N 25 Grant R Milledgeville Y 155 Greg Morris R Vidalia Y 20 Charlice Byrd R Woodstock X Bill 90 Howard Mosby D Atlanta Y 159 Amy Carter D Valdosta Y 30 Hamrick R Carrollton Y 95 Robert Mumford R Conyers Y Earl "Buddy" Ed 120 Quincy Murphy D Augusta Y 175 Carter R Pooler Y 15 Harbison D Columbus E 1 Jay Neal R LaFayette E 103 David Casas R Lilburn X 29 Seth Harp R Midland Y 69 Randy Nix R LaGrange Y 81 Jill Chambers R Atlanta Y Lee Mary Margaret 116 Mickey Channell R Greensboro Y 49 Hawkins R Gainesville Y 83 Oliver D Decatur Y 134 Mike Cheokas D Americus Y 31 Bill Heath R Bremen Y Warner 101 Mike Coan R Lawrenceville Y Steve 146 Larry O'Neal R Robins E 125 Jim Cole R Forsyth Y 41 Henson D Tucker Y 141 Bobby Parham D Milledgeville X 97 Brooks Coleman R Duluth E 4 Jack Hill R Reidsville Y Larry "Butch" 27 Doug Collins R Gainesville Y 32 Judson Hill R Marietta Y 156 Parrish R Swainsboro Y 41 Sharon Cooper R Marietta Y George 42 Don Parsons R Marietta Y 102 Clay Cox R Lilburn Y 14 Hooks D Americus Y 137 Allen Peake R Macon Y 16 Rick Crawford D Cedartown Y Ralph 143 Dubose Porter D Dublin Y 109 Hardie Davis D Gracewood Y 47 Hudgens R Comer Y 29 Alan Powell D Hartwell Y 122 Steve Davis R McDonough Y Bill 144 Jimmy Pruett R Eastman Y 163 Burke Day R Tybee Island Y 24 Jackson R Appling Y 7 David Ralston R Blue Ridge Y 13 Katie Dempsey R Rome Y Eric Peachtree 6 Tom Dickson R Cohutta Y 1 Johnson R Savannah Y 72 Matt Ramsey R City Y 45 Matt Dollar R Marietta E Emanuel 138 Nikki Randall D Macon X 86 Karla Drenner D Avondale Est. Y 10 Jones D Decatur Y Barbara Massey 150 Winfred Dukes D Albany Y Michael 11 Reece D Menlo X Powder Meyer Von 98 Bobby Reese R Sugar Hill Y 36 Earl Ehrhart R Sprgs. X 12 Bremen D Albany Y 51 Tom Rice R Norcross Y 108 Terry England R Auburn Y Dan Glenn 128 Carl Von Epps D LaGrange Y 56 Moody R Alpharetta Y 19 Richardson R Hiram P 106 Melvin Everson R Snellville Y 53 R Chickamauga Y 154 Jay Roberts R Ocilla Y 117 Barry Fleming R Harlem Y Jack 26 Carl Rogers R Gainseville Y 99 Hugh Floyd D Norcross E 27 Murphy R Cumming Y 171 Richard Royal R Camilla Y 147 Johnny Floyd R Cordele Y Nan 152 Ed Rynders R Albany Y 66 Virgil Fludd D Fayetteville Y 36 Orrock D Atlanta Y 93 Ron Sailor D Decatur X 3 Ron Forster R Ringgold E Chip 153 Austin Scott R Tifton Y 43 Bobby Franklin R Marietta Y 51 Pearson R Dawsonville Y 2 Martin Scott R Rossville Y 123 Gloria Frazier D Gracewood Y 23 J.B. Powell D Blythe Y 136 Tony Sellier R Fort Valley E 140 Allen Freeman R Macon Y Ronald 35 Ed Setzler R Acworth Y 57 Pat Gardner D Atlanta Y 43 Ramsey D Decatur Y 176 Jay Shaw D Lakeland Y 48 Harry Geisinger R Roswell Y Kasim 105 Donna Sheldon R Dacula Y 76 Mike Glanton D Ellenwood Y 35 Reed D Atlanta X 58 Robin Shipp D Atlanta Y 34 Rich Golick R Smyrna X Chip 119 Barbara Sims R Augusta Y 162 J. Craig Gordon D Savannah Y 21 Rogers R Woodstock Y 169 Chuck Sims R Ambrose Y 12 Tom Graves R Ranger Y Nancy Freddie Powell 149 Gerald Greene D Cuthbert E 50 Schaefer R Turnerville N 151 Sims D Albany Y 23 Mark Hamilton R Cumming Y Mitch Georganna 148 Bob Hanner D Parrott Y 28 Seabaugh R Sharpsburg Y 60 Sinkfield D Atlanta N 118 Ben Harbin R Evans Y Valencia 113 Bob Smith R Watkinsville Y 177 J. Mark Hatfield R Waycross Y 34 Seay D Riverdale Y Lynn Ratigan 104 John W. Heard R Lawrenceville Y David 70 Smith R Newnan X 114 Keith Heard D Athens Y 48 Shafer R Duluth N 131 Richard Smith R Columbus Y 62 Joe Heckstall D East Point Y Preston 168 Tommy Smith R Nicholls Y 67 Bill Hembree R Douglasville Y 52 Smith R Rome Y Pine 87 Michele Henson D Stone Mtn. E Cecil 129 Vance Smith R Mountain Y 21 Calvin Hill R Woodstock Y 18 Staton R Macon Y 132 Calvin Smyre D Columbus Y 180 Cecily A. Hill R St. Marys Y Doug LaNett Stanley- 61 Bob Holmes D Atlanta Y 6 Stoner D Smyrna Y 53 Turner D Atlanta X 112 Doug Holt R Social Circle Y 22 Ed Tarver D Augusta Y 78 Wade Starr D Jonesboro X 71 Billy Horne R Newnan Y Horacena 164 Ron Stephens R Savannah Y 170 Penny Houston R Nashville Y 38 Tate D Atlanta Y 92 Pam Stephenson D Atlanta X Henry "Wayne" Don Warner 121 Howard D Augusta Y 54 Thomas R Dalton N 145 Willie Talton R Robins Y 124 Sistie Hudson D Sparta X Regina 40 Rob Teilhet D Smyrna Y Carolyn Fleming 2 Thomas D Savannah N "Able" Mable 133 Hugley D Columbus Y Curt 100 Thomas D Atlanta Y 161 Lester Jackson D Savannah E 5 Thompson D Norcross N 55 Brian Thomas D Lilburn Y 80 Mike Jacobs R Atlanta Y Steve Steve "Thunder" 135 Lynmore James D Montezuma X 33 Thompson D Marietta N 38 Tumlin R Marietta Y Jeanette Ross 107 Len Walker R Loganville Y 28 Jamieson D Toccoa Y 20 Tolleson R Perry N 8 Charles Jenkins D Blairsville Y 91 Stan Watson D Decatur E Renee 22 Sean Jerguson R Canton Y 52 Joe Wilkinson R Sandy Sprgs. Y 45 Unterman R Buford N 75 Celeste Johnson D Jonesboro Y 49 Wendell Willard R Atlanta Y 40 Dan Weber R Dunwoody Y 37 Terry Johnson D Marietta Y 165 Al Williams D Midway X 37 John Wiles R Marietta Y Earnest "Coach" 46 Jan Jones R Alpharetta Y Tommie 89 Williams D Avondale Est. Y 44 Sheila Jones D Atlanta Y 19 Williams R Lyons Y 178 Mark Williams R Jesup Y 77 Darryl Jordan D Riverdale Y 4 Roger Williams R Dalton Y 59 Margaret Kaiser D Atlanta Y 33 Don Wix D Mableton E 179 Jerry Keen R St. Simons I. Y 73 John Yates R Griffin Y 173 Mike Keown R Coolidge E 126 David Knight R Griffin Y 4 24 Tom Knox R Cumming Y 158 Bob Lane R Statesboro Y Dist. Senator Party City Vote 167 Roger Lane R Darien Y David 82 Kevin Levitas D Atlanta Y 42 Adelman D Decatur Y 15 Jeff Lewis R White Y Don 54 Edward Lindsey R Atlanta Y 9 Balfour R Snellville Y 142 Jimmy Lord D Sandersville X Robert Barry 26 Brown D Macon Y 14 Loudermilk R Cassville Y John 139 David Lucas D Macon Y 11 Bulloch R Ochlocknee E 110 John Lunsford R McDonough Y Gloria S. 127 Billy Maddox R Concord Y 55 Butler D Stone Mtn. Y 172 Gene Maddox R Cairo Y Joseph Randal 13 Carter R Tifton Y 94 Mangham D Decatur X Ronnie 32 Judy Manning R Marietta Y 16 Chance R Tyrone Y 96 Pedro Marin D Duluth Y Jeff 47 Chuck Martin R Alpharetta Y 3 Chapman R Brunswick N Howard R. Bill 17 Maxwell R Dallas Y 46 Cowsert R Athens Y 111 Jeff May R Monroe Y Gail 30 Tom McCall R Elberton Y 44 Davenport D Jonesboro Y 115 Doug McKillip D Athens Y John 5 John Meadows R Calhoun Y 17 Douglas R Covington Y 79 Fran Millar R Dunwoody X Vincent 25 James Mills R Gainesville Y 39 Fort D Atlanta Y 88 Billy Mitchell D Stone Mtn. X Gregg Alisha Thomas 7 Goggans R Douglas N 39 Morgan D Austell Y Tim 155 Greg Morris R Vidalia Y 8 Golden D Valdosta Y 90 Howard Mosby D Atlanta Y Johnny 95 Robert Mumford R Conyers Y 25 Grant R Milledgeville Y 120 Quincy Murphy D Augusta Y Bill 1 Jay Neal R LaFayette E 30 Hamrick R Carrollton Y 69 Randy Nix R LaGrange Y Ed Mary Margaret 15 Harbison D Columbus E 83 Oliver D Decatur Y 29 Seth Harp R Midland Y Warner Lee 146 Larry O'Neal R Robins E 49 Hawkins R Gainesville Y 141 Bobby Parham D Milledgeville X 31 Bill Heath R Bremen Y Larry "Butch" Steve 156 Parrish R Swainsboro Y 41 Henson D Tucker Y 42 Don Parsons R Marietta Y 4 Jack Hill R Reidsville Y 137 Allen Peake R Macon Y 32 Judson Hill R Marietta Y 143 Dubose Porter D Dublin Y George 29 Alan Powell D Hartwell Y 14 Hooks D Americus Y 144 Jimmy Pruett R Eastman Y Ralph 7 David Ralston R Blue Ridge Y 47 Hudgens R Comer Y Peachtree Bill 72 Matt Ramsey R City Y 24 Jackson R Appling Y 138 Nikki Randall D Macon X Eric Barbara Massey 1 Johnson R Savannah Y 11 Reece D Menlo X Emanuel 98 Bobby Reese R Sugar Hill Y 10 Jones D Decatur Y 51 Tom Rice R Norcross Y Michael Glenn Meyer Von 19 Richardson R Hiram P 12 Bremen D Albany Y 154 Jay Roberts R Ocilla Y Dan 26 Carl Rogers R Gainseville Y 56 Moody R Alpharetta Y 171 Richard Royal R Camilla Y 53 Jeff Mullis R Chickamauga Y 152 Ed Rynders R Albany Y Jack 93 Ron Sailor D Decatur X 27 Murphy R Cumming Y 153 Austin Scott R Tifton Y Nan 2 Martin Scott R Rossville Y 36 Orrock D Atlanta Y 136 Tony Sellier R Fort Valley E Chip 35 Ed Setzler R Acworth Y 51 Pearson R Dawsonville Y 176 Jay Shaw D Lakeland Y 23 J.B. Powell D Blythe Y 105 Donna Sheldon R Dacula Y Ronald 58 Robin Shipp D Atlanta Y 43 Ramsey D Decatur Y 119 Barbara Sims R Augusta Y Kasim 169 Chuck Sims R Ambrose Y 35 Reed D Atlanta X Freddie Powell Chip 151 Sims D Albany Y 21 Rogers R Woodstock Y Georganna Nancy 60 Sinkfield D Atlanta N 50 Schaefer R Turnerville N 113 Bob Smith R Watkinsville Y Mitch Lynn Ratigan 28 Seabaugh R Sharpsburg Y 70 Smith R Newnan X Valencia 131 Richard Smith R Columbus Y 34 Seay D Riverdale Y 168 Tommy Smith R Nicholls Y David Pine 48 Shafer R Duluth N 129 Vance Smith R Mountain Y Preston 132 Calvin Smyre D Columbus Y 52 Smith R Rome Y LaNett Stanley- Cecil 53 Turner D Atlanta X 18 Staton R Macon Y 78 Wade Starr D Jonesboro X Doug 164 Ron Stephens R Savannah Y 6 Stoner D Smyrna Y 92 Pam Stephenson D Atlanta X 22 Ed Tarver D Augusta Y Warner Horacena 145 Willie Talton R Robins Y 38 Tate D Atlanta Y 40 Rob Teilhet D Smyrna Y Don "Able" Mable 54 Thomas R Dalton N 100 Thomas D Atlanta Y 55 Brian Thomas D Lilburn Y Regina Steve "Thunder" 2 Thomas D Savannah N 38 Tumlin R Marietta Y Curt 107 Len Walker R Loganville Y 5 Thompson D Norcross N 91 Stan Watson D Decatur E Steve 52 Joe Wilkinson R Sandy Sprgs. Y 33 Thompson D Marietta N 49 Wendell Willard R Atlanta Y Ross 165 Al Williams D Midway X 20 Tolleson R Perry N Earnest "Coach" Renee 89 Williams D Avondale Est. Y 45 Unterman R Buford N 178 Mark Williams R Jesup Y 40 Dan Weber R Dunwoody Y 4 Roger Williams R Dalton Y 37 John Wiles R Marietta Y 33 Don Wix D Mableton E Tommie 73 John Yates R Griffin Y 19 Williams R Lyons Y

Dist. Senator Party City Vote David 42 Adelman D Decatur Y Don 9 Balfour R Snellville Y Robert 26 Brown D Macon Y John 11 Bulloch R Ochlocknee E Gloria S. 55 Butler D Stone Mtn. Y Joseph 13 Carter R Tifton Y Ronnie 16 Chance R Tyrone Y Jeff 3 Chapman R Brunswick N Bill 46 Cowsert R Athens Y Gail 44 Davenport D Jonesboro Y John 17 Douglas R Covington Y Vincent 39 Fort D Atlanta Y Gregg 7 Goggans R Douglas N Tim 8 Golden D Valdosta Y Johnny 25 Grant R Milledgeville Y Bill 30 Hamrick R Carrollton Y Ed 15 Harbison D Columbus E 29 Seth Harp R Midland Y Lee 49 Hawkins R Gainesville Y 31 Bill Heath R Bremen Y Steve 41 Henson D Tucker Y 4 Jack Hill R Reidsville Y 32 Judson Hill R Marietta Y George 14 Hooks D Americus Y Ralph 47 Hudgens R Comer Y Bill 24 Jackson R Appling Y Eric 1 Johnson R Savannah Y Emanuel 10 Jones D Decatur Y Michael Meyer Von 12 Bremen D Albany Y Dan 56 Moody R Alpharetta Y 53 Jeff Mullis R Chickamauga Y Jack 27 Murphy R Cumming Y Nan 36 Orrock D Atlanta Y Chip 51 Pearson R Dawsonville Y 23 J.B. Powell D Blythe Y Ronald 43 Ramsey D Decatur Y Kasim 35 Reed D Atlanta X Chip 21 Rogers R Woodstock Y Nancy 50 Schaefer R Turnerville N Mitch 28 Seabaugh R Sharpsburg Y Valencia 34 Seay D Riverdale Y David 48 Shafer R Duluth N Preston 52 Smith R Rome Y Cecil 18 Staton R Macon Y Doug 6 Stoner D Smyrna Y 22 Ed Tarver D Augusta Y Horacena 38 Tate D Atlanta Y Don 54 Thomas R Dalton N Regina 2 Thomas D Savannah N Curt 5 Thompson D Norcross N Steve 33 Thompson D Marietta N Ross 20 Tolleson R Perry N Renee 45 Unterman R Buford N 40 Dan Weber R Dunwoody Y 37 John Wiles R Marietta Y Tommie 19 Williams R Lyons Y

ESTABLISHING OUR ROOTS BY MAGGIE WHITE

Every winter, when the state legislature protection improvements in current state was tacked on in the Senate. Rep. Mike convenes in Atlanta, Georgia Watch law. For example, Hamilton believes Keown (R-Coolidge), the sponsor of HB scales back much of our traveling and consumers should know that: 492, has already committed to filing outreach across the state. Though we the bill again in 2009. might not be as mobile, consumer • Most store clerks are not responsible feedback continues to pour in through for requesting your I.D. when you “I just want better for patients and our website and our toll-free hotline. make a purchase, which opens the their families who are left to deal with door for identity theft. Consumers the aftermath of medical errors,” Keep reading for a sampling of the should protect their credit cards and Baker said. Georgia citizens and the consumer regularly monitor their credit reports issues we get to work on every day! for unauthorized purchases made with Scott McGee of Marietta came to cards in their name. Georgia Watch after learning his Dr. Konrad Hayashi moved to Atlanta Waste Management service regularly in 2007 after spending six years in • Clerks often offer store credit cards, cast some of his recyclables into a Hawaii. Beginning with Pearl Harbor, though the credit inquiry made to landfill. Hayashi served in the US Navy for determine whether a consumer qualifies 30 years, most recently as the public for that card can shave precious points In July 2007, McGee received a letter health director for the United States off their credit score. Store managers from the company claiming that all Pacific Command. are often paid bonuses for the number recyclables would now be collected of applications, making this a credit together with garbage and yard While in Hawaii, Hayashi was a trap. debris, and eventually processed member of the First Unitarian Church into a soil-like compost marketed as of Honolulu’s Social Justice Council, Rita Baker of Warner Robins has been Bio-Blend. When McGee called the worked on Hawaii Rx Plus to get a Georgia Watch member since 2005. county government to confirm this, pharmaceutical coverage for lower Baker wants to see laws passed that though, he was told that all plastic, income individuals, worked to secure protect patients who experience medical aluminum and glass items were no housing for low-income individuals, and negligence and abuse. longer recycled at all. served on a public health committee. He will soon start with the US Centers Her husband, Ronnie, McGee believes that he and other for Disease Control and Prevention. died in 2001 because Waste Management customers have of a prescribed been grossly misinformed about Bio- His interest in high-cost lending – overdose of the blood Blend, and is upset that a business and the advertising that often targets thinner Coumadin. The operating under the guise of a recycling members of the military – brought him doctor admitted guilt, service is actually doing more damage to Georgia Watch. Hayashi is eager though the incident than good. to get involved in his newly-adopted RITA BAKER was not reported state and has invited Georgia Watch on his permanent We want to hear from you! to be regular guests with his church’s record because the medical board outreach program for racial justice. didn’t acknowledge the negligence as a Never hesitate to contact us about your “wrongful death.” consumer concerns – we want to hear Dewayne Hamilton of Savannah all about it. Let’s organize our efforts recently moved from Athens to open She was happy to learn of House Bill 492, to bring more consumer protection to a consumer education organization which would have added a non-doctor Georgia. called Totally Free. He is a certified member to the state medical board. credit counselor who helps consumers Currently, there is only one non-doctor See our website, www.GeorgiaWatch. in financial crisis get out of debt, avoid out of 13 total medical board members, a org, for regularly updated feature stories foreclosure, refinance high interest fact that many feel affects the objectivity on consumers like you. If you would like loans, and learn general financial and neutrality of the board. to share your experience with other literacy. Georgians, contact Jeannine Lowery at Despite passing the state House [email protected] or toll-free Hamilton served as a state unanimously, HB 492 failed during the last at (866) 33-WATCH. representative for 10 years and days of the 2008 General Assembly after believes there is a need for consumer a controversial and unrelated amendment

5 FORECLOSURES AND GEORGIA CONSUMERS BY THE NUMBERS BY DANNY ORROCK FORMER REP. RON SAILOR Also, mortgages are often sold several Payday lending supporter times, meaning it can be difficult for a and State Representative homeowner to determine who holds Ron Sailor (D-Decatur) their loan. To Brennan, this creates at recently resigned his least two problems. office amidst a money laundering conviction, “Is the foreclosure legal? And what if we and news reports about want to call the mortgage holder and try to money loaned to him by Willie Green, a work out a settlement to save the house? lobbyist who works on behalf of payday A foreclosure crisis has hit the country We can’t do that because we don’t know lenders. hard, and Georgia is no exception. Many who they are,” Brennan said. Amount of money Sailor laundered: recent homebuyers have had a difficult $375,000 time staying current on their mortgages Several pieces of legislation were Average fee Sailor charged the federal while still putting food on the table. introduced this year to help alleviate the agents posing as drug dealers: 10 percent foreclosure crisis: Amount payday lender Willie Green Foreclosures have risen sharply in recent loaned Sailor: $80,000 months, largely due homebuyers being • SB 519 (sponsored by Sen. Bill Amount to be repaid in five days: pushed towards certain loans that lead to Hamrick, R-Carrollton) – This bill would $120,000 unaffordable payments at a later date. In require mortgage holders to give more Annual percentage rate on Sailor’s loan: addition, inflated appraisals on property notice to homeowners before putting a 3,600 percent have allowed for larger mortgages. property up for sale at auction. Current Number of times Sailor voted to legalize law only requires that 15 days be given. payday lending in 2007: 2 Bill Brennan, director of the Home Defense This bill would extend that window to Number of times payday loan legalization Program at Atlanta Legal Aid Society, 30 days, allowing a homeowner more failed in the House: 2 said the subprime mortgage industry has time to try and work out a solution to Value of mortgage Sailor secretly took been looking for new markets in which to keep their home. out on his church: $250,000 each year. make new home loans. Source: Atlanta Journal-Constitution articles • SB 531 (sponsored by Sen. Bill “Years ago the mortgage industry ran out Hamrick, R-Carrollton) – Current law of financially eligible borrowers,” Brennan requires an ad to be placed in a local THE TRUTH said. newspaper listing the time, date and ABOUT “RAPID place of sale on a foreclosed home. REFUNDS” But subprime lending was very profitable, This bill would require that the ad list BY HOLLY LANG so lenders looked for ways to extend the creditor that holds the lien on the loans to people with impaired credit. property and that the creditor be the H&R Block claims that they are your party that conducts the sale. This “people” when it comes to getting your tax “They came up with products that legislation aims to make it easier for refund fast. But would a friend try to keep made the initial payments appear to be individuals and families to locate and part of your refund for themselves? affordable --adjustable rate mortgages contact the holder of the debt in order (ARMs), interest-only loans and option to negotiate a way to keep their home. ARMs, where the borrower could pick These days, many tax preparation chains one of three levels of payments,” Brennan • SB 496 (sponsored by Sen. Horacena market refund anticipation loans (RALs) as said. Tate, D-Atlanta) – This bill would make it a rapid refund, but RALs are really high- illegal for banks and mortgage brokers interest loans on your tax refund. When The problem with these types of products to bribe or coerce a real estate appraiser consumers opt for a RAL, they are simply is that they lead to higher payments to overvalue a property. Overvalued borrowing money from themselves. down the road. Add in the fact that some homes are used to make artificially lenders offered credit without taking into high loans to borrowers. When the real Most often, RALs affect low-income families account the borrower’s ability to repay, value of a home is less than the amount who must complete additional paperwork and many loans went into default. of the mortgage, homeowners are left to qualify for and receive the Earned Income upside down, a situation in which they Tax Credit (EITC). The EITC is the country’s largest Homeowners lost their house, which is owe more than what the property is anti-poverty program to reduce the auctioned off to the highest bidder on the worth. tax burden for low-income filers. courthouse steps. CONTINUED ON PAGE 7 6 NONPROFIT HOSPITALS AND THEIR THE TRUTH ABOUT “RAPID RESPONSIBILITY TO CARE REFUNDS” CONTINUED FROM BY HOLLY LANG PAGE 6

By definition, tax-exempt nonprofit hospitals While this may or may not be their intention, BY THE NUMBERS – RALs do not pay most taxes, including sales, the confusing terminology makes it extremely income or property taxes. They also receive difficult to figure out exactly what some 9 million: Number of taxpayers who bought millions from the state Indigent Care Trust hospitals believe they are spending on health RALs in 2006 Fund (ITCF) to reimburse them for health care for uninsured and low-income patients. care programs for indigent patients. 40 - 700 percent: Range of interest rates for The confusion and the inequities between RALs Tax exemptions and the ITCF are just two hospitals will continue until there are clear 36 percent: Interest rate cap on RALs for active definitions for different types of care, and some examples of the many ways that our state duty service members and local governments subsidize nonprofit standard for the amount of indigent and charity hospitals. care that a nonprofit hospital should offer every 10 - 15: Average days to receive an income tax year. return, if filed electronically In return, nonprofit hospitals are obligated to One out of 3: Number of Earned Income Tax provide affordable health care to uninsured This year, Rep. John Lunsford (R- McDonough) Credit (EITC) recipients who bought a RAL in and indigent patients, regardless of ability to sponsored House Bill 906, which would have pay. required Georgia’s nonprofit hospitals to provide 2006 at least five percent of their total adjusted gross $904 million: Amount RALs drained from the However, many of the state’s large nonprofit revenue as indigent care. EITC program in 2004 hospitals provide very little indigent or charity Source: www.consumerfed.org care, despite having the financial resources Hospitals that didn’t provide the five percent to do so. bare minimum would have had to pay back into the ITCF to make up the difference. Eighty-seven percent of the nearly 500,000 Georgians who requested a RAL for their We have noticed in their annual filings with the 2006 tax refund were filers with an adjusted IRS that nonprofit hospitals also use a variety And if a hospital failed to provide at least five gross income less than $37,263. of terms to describe their financial losses percent indigent care for two consecutive years, it would have lost its nonprofit status. on services provided in the community. For Five of Georgia’s rural counties are in the example: top 25 in the US for RAL usage. Metro In 2005, more than half of the state’s nonprofit Atlanta ranks fifth in the nation among large hospitals failed to meet the five percent • Indigent care: Health care services for metropolitan areas. self-pay patients who are unable to pay benchmark, including: Northside, Henry any portion of their bill. Medical Center, Children’s Healthcare Scottish In January, Rep. Rob Teilhet (D-Smyrna), Rite, Archbold Medical Center, Children’s Rep. Steve “Thunder” Tumlin (R-Marietta) • Charity care: Health care services Healthcare Egleston, Emory Crawford Long, and other House members from both parties delivered to a patient with no expectation Piedmont Healthcare, WellStar Windy Hill, filed House Bill 1030, which would have of payments for those services. WellStar Kennesaw, Southeast Georgia required tax prep chains to better inform Regional Medical Center, St. Joseph’s, St. consumers of RALs loan terms, fees and • Uncompensated care: Health care Joseph’s-Candler, and Rockdale Medical interest. services that go uncompensated, Center, among many others. regardless of the reason, and which Specifically, HB 1030 would have: may include charity care, bad debts and Though HB 906 did not make it through the discounts for Medicaid and Medicare. state legislature as hoped, Rep. Lunsford was • Required tax preparers to inform successful in passing House Resolution 1625, consumers that RALs are loans that must • Bad debt: Services that a patient is which created a legislative study committee be repaid even if the actual tax refund is unwilling to pay for, and should never to examine the issue of indigent care over the less than expected. be included in community benefit. remainder of the year. • Required tax preparers to inform consumers that they could electronically BY THE NUMBERS – file for and receive a tax refund inten GEORGIA NONPROFITS AND INDIGENT CARE days, free of charge. 65: Number of nonprofit hospitals in Georgia with more than 100 beds • Required tax preparers to display 19: Number of those hospitals that provided at least 5 percent of their adjusted gross revenue (AGR) information about the fees and interest in as indigent care. the store, so that consumers know exactly what they are paying to receive a RAL. 9: Number of those hospitals that didn’t even provide 1 percent of their AGR as indigent care. While HB 1030 never received a hearing 29: Number of nonprofit hospitals in the 13-county metro Atlanta area. this year, Reps. Teilhet and Tumlin have committed to work on this issue again in 13: Number of those hospitals that provided at least 5 percent of their AGR as indigent care. 2009. Source: Georgia Department of Community Health Annual Hospital Questionnaire Fiscal Year 2005

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