Legislators will soon begin hearings for Gov. Brian Kemp’s much publicized attempt to reform Georgia’s legal system.
For the first time since 2005 – when Republicans gained the majority in the State House for the first time in over a century, giving them full control of the Governor’s office and state legislature – a legislative package in Georgia will seek to address some of the state’s most contentious areas of litigation.
One of those areas is healthcare, as hospitals and physicians lament a system that has seen significant cost increases just to carry medical malpractice insurance. But since multimillion-dollar verdicts are typically the realm of John Grisham novels and attorneys advertising on TV, what does that mean for the rest of us?
For Georgia legislators, in 2005 as now, one goal is clear: to determine what healthcare damages are worth from a legal perspective, and consequently, the costs associated with maintaining the status quo.
Notably, much of the existing economic research on tort reform at the state level has focused on the impact of capping damages in medical malpractice cases. This is likely because many of the laws that once limited the amount of money a plaintiff could be awarded were later found unconstitutional by state Supreme Courts, offering tidy bookends to examine the impact of these laws.
Twenty years later, what types of reforms will lawmakers attempt to tackle this year? We look at tort reform and what it means for cost and access in healthcare in Georgia in this week’s commentary. We also have the latest news and analysis from the last week, including:
- House adopts mid-year budget
- Committee recommends no taxes on tips, firearms sales tax holiday
- Doug Collins confirmed as VA secretary
- Waffle House adds surcharge for eggs
Have a great weekend,
– Kyle Wingfield
Friday’s Freshest
Clarke County voters beg school board to not opt out of floating homestead exemption
More than 60% of voters in Clarke County said yes last fall to Georgia’s new floating homestead exemption, but the Clarke County School Board apparently plans to disregard the voters’ wishes. On the matter of the floating homestead exemption, the school district plans to opt out. This is per the wording on the school district’s website. Read it carefully, and you might notice a glaring contradiction. Voters who showed up for the second of three legally required public hearings on the matter noticed it too.
Kemp makes strongest push yet for tort reform
As Gov. Brian Kemp enters his home stretch as governor, he can point to progress on multiple fronts. He can claim a healthy record of employment growth, unprecedented budget surpluses that have driven tax rates lower (including another, just-announced tax cut) and moves to protect Georgia’s right-to-work status. But Georgia’s legal environment has deteriorated to the point that it threatens all the other good work that policy makers have done over the decades.
The worst time for Georgia to expand Medicaid
Our individual market for health insurance has blossomed in recent years for a variety of reasons. Those reasons include the successful launch of Georgia Access, the state’s online marketplace that replaced Healthcare.gov for Georgians, as well as the reinsurance plan championed by Gov. Brian Kemp, which has helped return carriers to our market and drive down premiums.
Members of Georgia’s legal and business communities warn that wealthy financiers, whether here or overseas, could quietly bankroll civil litigation lawsuits that could not only bankrupt big business but also jeopardize America’s national security. They believe that this is happening through a burgeoning legal mechanism known as third-party litigation funding.
Celebrating School Choice Week, and landmark school choice advances in Georgia
This year marks the 15th anniversary of National School Choice Week as well as an important moment in the history of the school choice movement. Educational freedom and opportunity has come a long way in 15 years, and even compared to a year ago, school choice in Georgia is in a very different position. It also faces a different set of challenges.
The Latest
Economy
New study finds Georgia will be top state for franchise business growth in 2025
A new study finds the state of Georgia will be the top state for franchise business growth this year. Citing the state’s population growth trends, business-friendly policies, and industry growth, the International Franchise Association says it expects franchising in Georgia to grow 6.7% this year, adding over 34,000 new businesses. That is more than any other state.
Mid-year state budget sails through Georgia House
The Georgia House overwhelmingly passed a $40.5 billion mid-year state budget containing hundreds of millions of dollars in new spending aimed largely at helping victims of Hurricane Helene recover from the devastating storm. The mid-year budget, which now moves to the state Senate, sailed through the House 166-3.
PBS Aerospace establishes North American HQ in metro Atlanta
Gov. Brian Kemp announced that PBS Aerospace, a designer and manufacturer of world-class small turbojet engines, will invest up to $20 million to establish its North American headquarters, manufacturing, and R&D operations in Roswell. The new operations will create at least 95 new jobs in metro Atlanta, growing the company’s presence in the state.
Education
Burns proposes a school safety database
Georgia House Speaker Jon Burns ended speculation on whether lawmakers would consider a school safety database. The proposed database, which would be operated by the Georgia Emergency Management and Homeland Security Agency, is part of a package announced by Burns this week.
USG Board of Regents names Augusta Tech’s Jermaine Whirl Savannah State president finalist
Dr. Jermaine Whirl, the current president of Augusta Technical College, was selected to become the next leader of Savannah State University after the University System of Georgia’s Board of Regents voted unanimously to approve him as the finalist during a board meeting in Atlanta. The vote comes as the result of a multi-year effort to find a new leader for the school.
Betsy DeVos on lessons learned as Secretary of Education
Betsy DeVos, an education philanthropist and prominent school-choice champion, served as secretary of education from 2017 to 2021. She emphasized the importance of seeking experienced counsel, navigating unreceptive bureaucracies, and standing behind one’s convictions.
Government accountability
Americans’ insurance rates are soaring and lawsuits play a significant role
Americans’ home and auto insurance rates have been soaring for years, with inflation, mounting losses from natural disasters, and rising repair and construction costs all playing a role. But the industry points to a significant driver behind accelerating premiums that often goes overlooked: the mounting lawsuits and payouts that cost insurers.
Committee recommends no taxes on tips, firearms sales tax holiday
A Georgia Senate committee unanimously recommended approval of a bill that would remove the taxes on tips for the state’s service workers. Sen. Greg Dolezal, R-Cumming, told the Senate Finance Committee on Wednesday that Senate Bill 2 would return $65 million to $95 million a year to taxpayers. President Donald Trump said during his campaign that he would remove the tax on tips at the federal level.
Carr: More than $604,000 tied to Paycheck Protection Program fraud
Attorney General Chris Carr said 21 Mitchell County residents are facing charges in connection with a Paycheck Protection Program fraud scheme that netted each person more than $20,000. The 21 individuals are accused of claiming they owned businesses that investigators found to be nonexistent, according to Carr. The combined amount of loans is more than $604,000.
Transportation
Congestion is back, for trucks as well as cars: How does Atlanta fare?
The states with the highest truck congestion costs in 2022 were Texas, followed by California, Florida, New York, and Georgia. For auto commuters, the highest delay (person-hours) in 2022 was once again in Los Angeles, followed by San Francisco/Oakland, New York/Newark, Washington, D.C., and Atlanta. Almost the same ranking appears for annual congestion cost per commuter.
The Trump administration’s impact on autonomous vehicles
The autonomous vehicle (AV) industry stands at the forefront of innovation, poised to revolutionize transportation globally. The new Trump Administration’s deregulatory approach, history of advancing pro-AV policies in its first term and Elon Musk’s prominent role in the administration have generated a widespread belief that the next four years will be transformational for the development and deployment of emerging technologies, such as AVs.
Bonus
The Department of Government Efficiency (DOGE), led by Elon Musk, is working to cut federal spending, shrink the government’s workforce and increase the efficiency of federal agencies. DOGE was created by President Donald Trump through an executive order he signed on Inauguration Day. Under the order, DOGE will be a temporary organization within the White House that will spend 18 months until July 4, 2026, carrying out its mission.
Doug Collins confirmed as VA secretary
The U.S. Senate voted Tuesday to confirm former U.S. Rep. Doug Collins of Gainesville as secretary of Veterans Affairs. The Republican nominated for the post by President Donald Trump received strong bipartisan backing in a 77-23 vote, with both of Georgia’s Democratic senators, Jon Ossoff and Raphael Warnock, supporting the nominee.
Waffle House is passing along the sky high cost of eggs to diners with a 50 cent surcharge
The Waffle House restaurant chain is putting a 50 cent per egg surcharge in place because of the biggest bird flu outbreak in a decade. The 24-7 restaurant said that the resulting egg shortage has led to a dramatic increase in its costs. The Waffle House, known as a reliable source of a cheap breakfast, said that its egg surcharge became effective this week and that it applies to all of its menus.
Quotes of Note
“The biggest risk is taking counsel from the ‘experts’ that populate the alphabet soup of DC’s education lobby. Many are bought and paid for by the unions . . . Washington is full of people who will tell you ‘how things are supposed to be done,’ but that advice is almost always in the service of systems, not kids.” – Betsy DeVos, on advice for the next Secretary of Education
“Strike it lucky on these major lawsuits, and then, not only do you see that on some of these individual personal injury cases, but even more problematic – as tragic as that is – to the nation’s economy is that you have entities that are backed by foreign players, foreign parties like the [Chinese Communist Party] and others who are filing these third party litigation financed lawsuits against major American industries, especially in the technology sector, and they use these lawsuits to try to gain access to intellectual property through the discovery process.” – David Sampson, president and CEO of the American Property Casualty Insurance Association
“Not for long. This is obviously a huge waste of taxpayer money!” – Elon Musk, in response to reports that media outlets like Politico, Associated Press and New York Times receive millions in taxpayer dollars each year.
