The Alabama Farmers Federation wants state lawmakers to let them provide their own health coverage for members. They argue that more affordable plans could save struggling farm families a lot of money, potentially boosting their productivity.
However, some opponents of Senate Bill 84 worry that this would allow Alfa to avoid important insurance regulations. This could lead to unfair practices, like selectively choosing healthier customers and not covering necessary treatments.
This issue came up briefly during the 2024 session, showing a clash between powerful lobbying groups in Montgomery.
Preston Roberts, Alfa’s director of agricultural legislation, pointed out that many Alabama farmers find themselves in a tough spot. They are self-employed and don’t have employer-provided insurance. At the same time, they earn too much to qualify for subsidies under the Affordable Care Act. For example, a family of four making over $125,000 doesn’t get any tax credits.
Roberts shared that some farmers pay as much as $2,500 a month for health insurance, which may force them to delay buying new equipment or hiring staff. This can stall their growth. Some families even choose to forgo insurance altogether, while others have to take off-farm jobs just to secure health benefits.
On top of all this, Alabama farmers face rising costs and an unstable economy. Last year, they collectively lost over $1 billion in income, according to Roberts.
While the legislation doesn’t specifically mention Alfa, it would enable a longstanding nonprofit agriculture organization in Alabama to offer health benefits important for its members’ well-being. This type of proposal is already in place in Tennessee and around ten other states, with a similar bill being discussed in Ohio.
Alfa is not marketing these health plans as “insurance,” which raises concerns among critics. They argue that this could allow Alfa to refuse coverage for those with pre-existing conditions or cancel policies when someone becomes ill. Sophie Martin, a spokesperson for Blue Cross and Blue Shield of Alabama, stated that this exemption from regulations puts Alabamians at risk for inadequate coverage.
Such plans are also not required to cover important services like routine check-ups and preventive screenings, which are essential for maintaining health. Martin says that about 85% of applicants in Tennessee are typically accepted into these plans. Furthermore, Roberts claims that once someone is accepted, they remain covered as long as they pay their premiums.
However, critics point out that this promise isn’t included in the actual legislation, leading to concerns about whether insurers could still cancel policies unexpectedly.
The Alfa proposal is primarily aimed at farmers, small business owners, and independent contractors. While anyone can pay to become a member, Roberts estimates that the plans might only attract around 10,000 people in Alabama over the next five years.
In Tennessee, similar plans have around 138,000 participants, representing less than 2% of the population. A coalition of 30 organizations recently urged lawmakers to reject this proposal, warning that insufficient coverage can harm public health and may increase costs in the broader healthcare system.
Despite the opposition, Sen. Arthur Orr, the bill’s sponsor, insists that Alabama’s high healthcare costs necessitate change. He believes this legislation would give people more choices regarding their health coverage, similar to successful plans in other states.
The bill is currently with the Senate Banking and Insurance Committee, and its agenda date is still pending. Roberts emphasizes that while the Alabama Legislature can’t control various costs affecting farmers’ operations, this is an area where they can truly make a difference.
