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A bill that would allow the Alabama Farmers Federation to offer health plans made its debut in committee Wednesday, drawing members of the public to fight for and against the novel health option.
HB477 by Rep. David Faulkner, R-Mountain Brook, follows the lead of 10 other states that have allowed such plans to move forward. Faulkner said the plans could lower health care costs by 30 to 60 percent for self-employed farmers who earn too much for health care marketplace incentives and do not have the benefit of corporate health benefits.
“The Farmers Federation is not looking to change Alabama’s healthcare market. Hear me out. This is not a plan for everyone,” Faulkner said. “This doesn’t even save the nation or the state in healthcare – but it is an option for some – and it could mean economic survival for small business owners and farmers.
“Tennessee has been doing this since 1947, they have 138,000 covered lives in a state that has 7.2 million people. They’ve been doing it since 1947 and 138,000 covered lives in that time period. So it’s not for everybody, and it doesn’t fix everything, but it is a good option, and it’s a tried and proven option.”
Not everyone has such faith in the health plans.
Ted Hosp, executive director of governmental affairs for Blue Cross Blue Shield, resigned himself to the inevitable passage of the bill, but strongly condemned the proposed health plans for skirting insurance regulations.
“Most important, they will not be required to cover people with pre existing conditions like cancer survivors or people with diabetes and high blood pressure, we think it’s a mistake to allow just one company to sell an unregulated health insurance plan, operated entirely out of Tennessee, using United Health Insurance to make decisions on which claims will be paid and which will be denied.”
Hosp called on the committee to amend the bill to include protections against cancellations or premium hikes when the policyholder becomes ill. Hosp also lobbied for the plans to include coverage for mental health and prescription drugs and for enforcement authority from Department of Insurance.
Rep. Frances Holk-Jones, R-Foley, said she supports the idea but has concerns about the language of the bill as presented.
“My late husband was a farmer, and I’ve been an insurance professional for 48 years,” Holk-Jones said. “I applaud ALFA for doing this. I am 1,000 percent in favor of competition. I know we need it, guys — I am on your side. But as a 48 year insurance professional, I deal in these policies every day. Words have meaning, and I’m worried about the words.”
Danne Howard of the Alabama Hospital Association said there are concerns about lifetime and annual limits on coverage.
“One serious injury, one serious illness, costs mount up quickly,” Howard said.
Howard also emphasized the need for accountability under the Department of Insurance, arguing that protections added to the bill are moot without a tool of enforcement. As currently presented, Howard said policyholders would have to seek relief from the courts if their protections aren’t honored.
The committee did not vote on the bill. It could come back up next week for a vote and make its way toward the full House.
