With time running out on the 2010 session of the Georgia General Assembly, Senator Ralph Hudgens, along with President Pro Tem Tommie Williams and Majority Leader Chip Rogers, amended House Bill 307 to reduce the state premium tax paid by Georgia residents on health insurance policies. The tax cut will take effect on January 1 of the calendar year immediately following the state fiscal year in which the revenue shortfall reserve is funded at the level of $500 million or more. Hudgens stated, "Cutting the state premium tax has been something I've fought for for years and is one of the cornerstone issues of my campaign for Insurance Commissioner."

The underlying measure, House Bill 307, which passed the House of Representatives a week ago, addresses the urgent needs of the state's indigent care hospitals. If signed by the Governor, the bill would fill a gap of over $850 million in the state's Medicaid funding. The proposal was brought to the General Assembly by the state's hospitals in order to avoid a new tax, however, due to the fact that it resulted in the state collecting new revenues, many senators pushed for an amendment to make the bill revenue-neutral.  Hudgens said, "The best thing about this bill is that the increased revenue from hospitals will sunset in three years while the tax cuts will be permanent. The General Assembly is under a lot of pressure to produce a balanced budget. We stepped up and made the tough decision for the short-term and long-term needs of the state ."

The bill will now go back to the House of Representatives for further consideration.