Ivey signs bill that sparked battle between ALFA, Blue Cross and Blue Shield of Alabama
Gov. Kay Ivey has signed into law a bill to allow the Alabama Farmers Federation to offer a health care plan for its members that will not be subject to the same laws and regulations as health insurance programs.
Lawmakers passed the bill, by Rep. David Faulkner, R-Mountain Brook, last week.
The legislation had strong bipartisan support, passing the House 98-1 and the Senate 30-2.
Supporters said the plan would provide an affordable alternative for farmers and self-employed people who are ALFA members and who struggle to pay for health insurance.
People who have access to employer-sponsored plans would be ineligible to buy the plans.
The bill drew opposition from some health care groups, including Alabama’s largest health insurer, Blue Cross and Blue Shield of Alabama.
Opponents said the plan will create an unlevel playing field because it would not have to comply with the Affordable Care Act and could deny coverage to people with expensive, preexisting medical conditions, which insurance plans cannot do.
Read more: Political heavyweights wage battle that could greatly alter Alabama’s health insurance market
The bill does carry some protections for consumers.
Benefits could not be capped at less than $2 million per enrollee.
Members could not lose coverage or have their premiums increased because of an illness or medical event.
Eleven other states, including Tennessee, have farm bureau health insurance plans, according to the Senate sponsor of the bill, Sen. Arthur Orr, R-Decatur.