NCPA - National Center for Policy Analysis


August 21, 2007

Georgia Gov. Sonny Perdue drew immediate praise from business advocates, representatives of the Georgia Chamber of Commerce and the National Federation of Independent Business when he disclosed the outline of his proposal to help some small-business employees pay for health insurance, says the Athens Banner-Herald.

Under Purdue's plan:

  • $20 million in state funds and federal money expected to be left over from Medicaid efficiencies would subsidize health premiums of small businesses with middle- and low-income workers.
  • The governor's office figures 30,000 of the 380,000 uninsured small-business workers could be covered.
  • The income maximum would be $62,000 for a family of four or $30,000 for a single person.

Further, Gov. Perdue's concept won an endorsement recently from "the father of health savings accounts," John Goodman, president of the National Center for Policy Analysis.  In fact, health savings accounts would be one option participating employers could offer in addition to a Cadillac option that mirrors the benefits state workers get.

Goodman prescribes mechanisms that would spur health providers to compete on price and service and would require patients to make hard choices between the price of treatment and other uses of the money.  When asked about Gov. Perdue's plan, he gave it his blessings.

Walter Jones, "Jones: Perdue's health-insurance proposal will take some selling," Athens Banner-Herald, August 20, 2007.

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