Alfa Health Plan legislation is expected on the agenda in the Senate Banking and Insurance Committee next week when the Legislature returns from spring break.
SB 232 by Sen. Arthur Orr, R-Decatur, would allow the Alabama Farmers Federation to offer quality healthcare at a reasonable price. The committee held a public hearing last Wednesday regarding the legislation and a vote is expected Wednesday.
Members of the committee are Chair Shay Shelnutt, R-Trussville; Vice Chair Jack Williams, R-Wilmer; Ranking Minority Member Rodger Smitherman, D-Birmingham; Sen. Will Barfoot, R-Pike Road; Sen. Josh Carnley, R-Ino; Sen. Merika Coleman, D-Pleasant Grove; Sen. Chris Elliott, R-Josephine; Sen. Kirk Hatcher, D-Montgomery; Sen. Jay Hovey, R-Auburn; Sen. Andrew Jones, R-Centre; Sen. Wes Kitchens, R-Arab; Sen. Steve Livingston, R-Scottsboro; Sen. Randy Price, R-Opelika; Sen. Dan Roberts, R-Mountain Brook; Sen. Bobby Singleton, D-Greensboro; and Sen. Jabo Waggoner, R-Vestavia Hills.
Federation External Affairs Department Director Brian Hardin said health plans are designed for members who don't qualify for employer health insurance or adequate federal subsidies.
"While not health insurance, Alfa Health Plans would provide comprehensive coverage comparable to major health insurers," Hardin said. "Many of our members, especially young farmers and small business owners, struggle to find affordable health coverage. Alfa Health Plans focus on providing coverage for those who fall in the gap."
SB 232 would allow the Federation to model the Alfa Health Plan after those offered by other Farm Bureaus. Tennessee Farm Bureau Health Plans (TFBHP) has been offering coverage to members since 1947. Farm Bureau Health Plans Executive Director of Governmental Affairs Ben Sanders said Tennessee plans cover all essential health benefits including preventative care, prescription drugs, maternity, hospitalization, emergency room services, newborn and pediatric care, outpatient surgery, mental health, substance abuse treatment, rehabilitation, and cancer care.
According to Sanders, health plans are individually rated, which controls costs. Health plan coverage is typically 30-60% less expensive than unsubsidized health insurance. TFBHP accepts about 90% of members who apply. Once accepted, members can't be canceled for claims history or change in medical status, Sanders said. Alfa Health Plans would be administered by a third-party administrator regulated by the Alabama Department of Insurance.
In addition to Tennessee, Indiana, Iowa, Kansas, South Dakota and Texas have enacted state laws to allow health plans. Five other states are currently considering health plan legislation.
Federation members are encouraged to contact their senators and ask them to vote "yes" on SB 232.
More information about Alfa Health Plans can be found in the "Closing the Gap" information sheet below and this week's Alabama AgCast. Senators can be quickly reached at the "Voter Voice" link below.
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