Auto rates rise

Many Georgians are likely to see higher car insurance premiums. A new state law allows insurance companies to set their own rates. The goal of the bill was to drive prices down by adding competition to the marketplace. But so far, 19 insurance companies have raised rates, in some cases by as much as 81%.

(Morris News Service)

Proposed cuts to social services, higher ed

Georgia's social services programs face deep cuts. Today the board of the Department of Human Resources approved the cuts following a directive from Gov. Sonny Perdue to slash spending. Georgia is facing a 1.6-billion-dollar budget shortfall. Among the programs that could be cut are waivers for mentally disabled adults which allow them to move from institutional settings into home care. There would also be cuts to the state's mental health system and substance abuse programs.

Also today the state Board of Regents approved its budget cut proposals. They include lay-offs and a hiring freeze, hiking student fees and health insurance premiums for employees, and revoking guaranteed tuition rates. The Governor will look over all agencies’ proposals and make final budget cut decisions this fall.

HMO rates could spike in Georgia

A new report predicts big rate hikes for southeasterners who belong to Health Maintenance Organizations – or HMO’s. The Atlanta Business Chronicle says an analysis from Hewitt Associates predicts HMO premium rates to rise next year to their highest levels in four years. Rates could go up 18% in the southeast. That’s compared to 11% at this time last year. Premium rates could also go up 18% in the Midwest.