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Bill allowing Farmers Federation to offer health plans goes to governor

The legislation faced criticism over lack of oversight and protections for pre-existing conditions.

The logo of ALFA Insurance.

A bill that would authorize the Alabama Farmers Federation to offer health coverage plans to its members is headed to the desk of Gov. Kay Ivey to be signed into law.

After being amended 18 times in the House, House Bill 477 by Rep. David Faulkner, R-Mountain Brook, escaped further changes in the Senate despite attempts to add coverage for pre-existing conditions by Senate minority leader Bobby Singleton, D-Greensboro.

Singleton tried to add the amendment during floor debate Thursday after being blocked by a Senate committee last week. Democrats also tried to add regulation by the Department of Insurance, a battle that the bill’s sponsors have been fighting off all session.

Critics of the bill say lack of enforcement by the Department of Insurance will leave patients with nowhere to turn if their claims are wrongfully denied, but proponents have said the Department of Insurance lacks the enforcement capability anyway.

Sponsors of the bill say it will give Alfa members who earn too much to receive subsidies through the healthcare marketplace a chance at more affordable health premiums.

“We continue to have grave concerns about the harmful effects SB84 and HB477 would have on Alabamians, especially after the failure of amendments that would have added oversight and patient protections,” said Jane Adams, government relations director for the American Cancer Society Action Network in Alabama. “There’s a reason why these plans are currently illegal. If state lawmakers legalize the sale of substandard health plans, they will leave Alabamians, including cancer patients, exposed to medical and financial harm.

“Farmers and their families need comprehensive health insurance, not look-alike health plans that create a false sense of security for consumers, who may only discover the gaps in coverage when they face a serious illness. The farm bureau takes people’s money when they’re healthy, but doesn’t want to give them access to care when they need it most.”

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Jacob Holmes is a reporter at the Alabama Political Reporter. You can reach him at [email protected]

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