State lawmakers are looking for ways to provide relief for Georgians feeling the pinch of expensive insurance rates.
But four months after legislators narrowly passed Gov. Brian Kemp’s civil litigation legislation, they disagree on why insurance premiums for drivers, patients and homeowners have skyrocketed since the pandemic.
State Rep. Matt Reeves, who is overseeing the special legislative committee on insurance rates, said lawmakers will examine the insurance industry’s system for setting rates and processing claims over five meetings throughout the state. The Republican-dominated committee will also review the industry’s profit margins and develop suggestions to force insurers to comply with state laws.
“My constituents and the constituents of all 180 House members have made us aware of this issue (insurance rates) that is a broad problem that we are looking for solutions on,” said Reeves, R-Duluth.
Earlier this year, Kemp said “excessive and frivolous” lawsuits hindered companies’ ability to stay afloat because they had to pay out settlements from meritless lawsuits.
The new law signed in April, referred to by supporters as “tort reform,” limits lawsuits and the amount of money juries can award. As a result, Kemp and his allies said insurance rates would drop since insurers would no longer have to pay bogus claims.
The House established the Blue-Ribbon Study Committee on Insurance Rates to study how to make the market more affordable.
“We took the biggest risk off the table (for insurers). Now they have to behave,” Insurance Commissioner John King said.
However, Jason Branch, an Atlanta attorney, said other factors more significantly influence insurance rates, including population increases, inflation and more natural disasters. He represents the Georgia Trial Lawyers Association, which fought against Kemp’s legislation.
Insurers are actually making quite a profit and paying out less money compared to about a decade ago. And companies aren’t leaving the Georgia market, said Branch, citing a lengthy report reviewing the insurance industry.
Lawmakers also are seeking to ensure the state’s 2022 mental health law is being enforced. It mandates insurance companies to cover mental health care the same as physical health. King has been criticized for failing to uphold the requirements of the statute.
State Rep. Michelle Au, D-Johns Creek, suggested some insurers may be choosing to avoid covering mental health claims and instead paying fines at a lower cost. Reeves said lawmakers could revisit those fine amounts next year.
The next meeting will take place in September in Savannah, where discussion is expected to involve homeowner rates and impacts from Hurricane Helene.
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