The Alabama Farmers Federation’s proposal to be able to sell health care coverage to its members won its first vote in a House committee Tuesday after the bill was amended multiple times to add more regulations and requirements.
House Bill 477 sponsor Rep. David Faulkner, R-Mountain Brook, said friendly amendments included that customers’ coverage can’t be stopped due to illness and adding prescription drugs and mental and substance abuse treatments to the list of required coverage.
Both of these issues were priorities when the bill was debated last week by the House Health Committee.
The committee on Tuesday also amended the bill to give the Alabama Department of Insurance authority to enforce the law.
Faulkner opposed that amendment, saying what Alfa is proposing already has more regulations than what is offered in 10 other states that have what are known as Farm Bureau plans.
“No other state has handed over the enforcement of these plans to their insurance departments,” Faulkner said, arguing that the state insurance department does not regulate self-insured plans, which is what Alfa wants to offer.
The bill now moves to the House, and then the Senate, with 11 legislative days remaining in the session.
Alfa and supporters have argued that farm families are suffering from high insurance premiums, jeopardizing their livelihoods and keeping young people from entering the industry.
“We appreciate Rep. Faulkner’s tireless work to answer questions and address concerns as we seek to provide relief for Alabama farmers facing financial crisis,” Brian Hardin, Alfa’s director of external affairs, told Alabama Daily News. “Today, he supported additional amendments, which make HB 477 by far the most regulated Farm Bureau health plan legislation in the country. We appreciate members of the House Health Committee who stood with the dozens of farmers on hand for today’s vote. We are disappointed with the addition of vague language that would subject farmer health coverage to greater regulation than other self-funded plans.”
Opponents have said Alfa will be able to select only healthy people for the plans that don’t have to follow the same rules as traditional insurance providers.
Alfa has said that in Tennessee, where these plans originated, about 85% of applicants are accepted.
“(Having to accept all pre-existing conditions would) kill the bill and kill this option for Alabama farmers and small business owners,” Faulkner said in committee Tuesday.
Some proposed amendments were struck down Tuesday, including those to report each year how many people are on Alfa health plans and create a stipulation on when changes to annual coverage caps can be made.
Faulkner said Alfa didn’t plan to have caps on coverage.