Sen. Renee Unterman named 2008 Friend of the Consumer

ATLANTA – Georgia Watch recently presented Sen. Renee Unterman (R-Loganville) with the 2008 “Friend of the Consumer” award for her important work on behalf of the state’s consumers during the 2008 General Assembly.

Chief among her consumer protection efforts this year was her support of House Bill 130, which allows consumers to place a “freeze” on their credit files for a low fee beginning August 01.

Specifically, Sen. Unterman spoke from the Senate floor in support of reducing the fee for a credit freeze from $10 to $3. The lower fee ultimately prevailed in the state House and Senate. Under the new law, victims of identity theft and senior citizens 65 and older can access a credit freeze for free.

"I am excited beyond words that we in Georgia now have the best credit freeze law in the United States,” said Georgia Watch board member and consumer guru Clark Howard. “Now Georgians have the best way possible to shut down identity thieves cold.”

Credit freeze is the only effective, proactive tool to stop new account fraud before it starts. A freeze allows consumers to bar access to their credit files with the three major credit reporting agencies, prohibiting identity thieves from fraudulently opening new accounts or lines of credit in a victim’s name.

“It’s been a pleasure to work with Georgia Watch and Clark Howard on the credit freeze issue,” Unterman said. “I look forward to working together on other important consumer issues in the future.”

“Over the past three years, discussion and study of the credit freeze issue was mostly limited to the state House,” said Allison Wall, executive director of Georgia Watch. “Sen. Unterman helped raise awareness and inform her colleagues in the Senate, and without that dedication, passing a strong law off the Senate floor would not have been possible."

Georgia Watch will also recognize Sen. Unterman in its fall newsletter.

A Crisis of Affordable Health Care at Memorial University Medical Center:Report reveals how hospital management affects health care access, cost.

ATLANTA – Georgia Watch recently released a detailed financial analysis of Savannah’s Memorial University Medical Center, which serves approximately 35 counties and is one of Georgia’s four Level 1 trauma centers.

“A Crisis of Affordable Healthcare: Memorial University Medical Center” describes how the tax-exempt nonprofit hospital has reported dramatic swings in revenue since 2000 and has operated with low levels of cash reserves, one example of which is days cash on hand.

In 2006, Memorial maintained an average of 19 days of cash on hand – down from 25 days of cash on hand in 2005. By comparison, the Medical Center of Central Georgia (Macon) held approximately 260 days, Northside Hospital (Atlanta) held about 142 days, Phoebe Putney Memorial Hospital (Albany) held about 254, and Henry Medical Center (Stockbridge) held approximately 360 days cash on hand in 2005.

Memorial reported severe financial shortfalls for Fiscal Years 2006 and 2007, which have resulted in layoffs and reduced benefits to the community. In April 2008, Memorial CEO Bob Colvin was fired amid reports that the hospital would post a deficit of more than $35 million in 2007. Memorial reported an $843,810 surplus for Fiscal Year 2006 – compared to an over $20 million surplus for Fiscal Year 2005.

While providing the lion’s share of indigent care in southeast Georgia as the region’s primary safety net hospital, Memorial University Medical Center also charged uninsured patients significantly higher costs for services than average payments received from most third party payers, such as private insurance, Medicare and Medicaid.

Report findings include:

A 279 percent overall price mark-up – from approximately $390,645,400 in costs to $1,088,103,757 in patient charges;
A average 604 percent mark-up in drug charges to patients;
Laboratory tests were charged 448 percent over cost for patients;
An average 61 percent discount to private insurers.

Read the report here.

Fulton County Superior Court judge strikes down a portion of tort reform:Some feel stage now set for Georgia Supreme Court review of state tort law

ATLANTA – In a decision made late April, Fulton County Superior Court Judge Marvin S. Arrington Sr. ruled unconstitutional the state's $350,000 limit on pain and suffering damages in medical malpractice cases. According to the Fulton County Daily Report, the judge signed an order April 28 holding that the limits, approved by the General Assembly and Gov. Sonny Perdue in 2005, rendering a jury's decision on pain and suffering damages useless.

The judge wrote: "The disabled manager of a hedge fund, a corporate CEO, an entertainer or such other person whose income is in the tens of millions of dollars has a claim under Georgia law that would dwarf the amount awarded in any case for pain and suffering."

Some hail the decision as a step towards fairness in Georgia's tort reform law. Atlanta Journal-Constitution opinion writer Maureen Downey wrote on May 6 the move was a "victory for consumers." Downey also cited another failing of the current law, which requires a patient prove a higher standard of negligence in order to receive compensation for injuries sustained while receiving care. Downey writes: "Why should a person who loses a limb through the negligence of a truck driver, for example, merit more in damages than a person disabled because of the negligence of a doctor? If appealed, as seems likely, Arrington's decision will set the stage for a Georgia Supreme Court showdown over tort reform. The court ought to throw the law out."

Rep. Rich Golick named Georgia Watch "Legislator of the Year"

ATLANTA – Georgia Watch board member and bestselling consumer guru Clark Howard presented to Rep. Rich Golick (R-Smyrna) the first annual Georgia Watch “Legislator of the Year” award at the Rotary Club of Vinings Wednesday, May 14.

Chief among several notable efforts in the state House on behalf of consumer protection was Rep. Golick’s co-sponsorship of a successful amendment to the credit freeze bill – House Bill 130 – to reduce the fee cap from $10 to $3.

As a result of Rep. Golick’s outspoken support from the House floor, Georgia consumers can place a freeze on their credit file for $3 or less beginning August 1. For victims of identity theft and senior citizens 65 and older, the freeze will be free.

Rep. Golick also sponsored House Bill 1344, a pro-consumer bill that, had it passed, would have required pawnbrokers and car title lenders to return to borrowers any surplus funds from the sale of a repossessed car.

Under Georgia law, pawnbrokers and title lenders can repossess a pawned car if a borrower is one day late on a payment. After repossession, borrowers have thirty days from the date of default to repay the loan in full, plus back interest, repossession fees and storage fees.

If a borrower fails to make full payment, current law allows pawnbrokers and title lenders to sell the car and pocket all the proceeds from the sale – even if the car is worth far more than the amount owed by the borrower.

“Through his leadership and support of both the credit freeze and car title loan bills, Rep. Golick has demonstrated his dedication to promoting and advancing fair, sound policy that benefits Georgia consumers,” said Georgia Watch Executive Director Allison Wall. “Georgia Watch appreciates and applauds his dogged efforts, and is proud to honor him with our 2008 ‘Legislator of the Year’ award.”

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