Give Big to Georgia Watch Help Us Celebrate Our fifth Year As the State’S Leading Consumer Watchdog by Contributing to Georgia Watch Today
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55 MARIETTA STREET SUITE 903 ATLANTA, GA 30303 Give Big to Georgia Watch Help us celebrate our fifth year as the state’s leading consumer watchdog by contributing to Georgia Watch today. Georgia Watch is doing more than ever to help you learn about and avoid insurance scams, predatory lenders, hospital infection rates, access to affordable health care and other threats to our families and our way of life. We work to raise these same issues with the media and state officials every day, and guard against attacks on your rights by powerful interest groups at the state Capitol. Through generous tax-deductible contributions from our members, we are able to grow, and so does our ability to help Georgia consumers. We’re excited about what we’ve accomplished and what lies ahead – but we can’t do it alone. A tax-deductible contribution of any amount to Georgia Watch today is money well spent. 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.