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Dozens of Alabama farmers were in the Senate gallery Thursday to witness history as Alfa Health Plans legislation won final passage.
"This is a big day for Alabama farm families!" said Alabama Farmers Federation President Jimmy Parnell. "With farmers facing the worst economic challenges in 40 years, passage of Alfa Health Plans legislation provides hope for the survival and sustainability of these family businesses. The engagement of Alabama Farmers Federation members — from phone calls and emails to multiple trips to the State House — demonstrates the importance of this issue. This bill will have a positive impact on Alabama agriculture and small businesses for generations to come."
HB 477 by Rep. David Faulkner, R-Mountain Brook, allows the Federation to offer quality, affordable health coverage as a member-benefit option. The bill passed the Senate on a 30-2 vote with two abstentions. Sen. Arthur Orr, R-Decatur, who sponsored the Senate companion bill, spoke about the need for affordable coverage and defended the legislation from harmful amendments.
Parnell thanked the sponsors, leadership and legislators who supported Alfa Health Plans through the hard-won battle.
"We appreciate Sen. Orr for bringing this idea to the Federation and Rep. Faulkner for also being a steadfast champion of the legislation as House sponsor," Parnell added. "Today would not be possible without the support of Speaker Nathaniel Ledbetter and President Pro Tem Garlan Gudger, who recognized the urgent need facing our farmers and made passage of HB 477 a priority. On behalf of Alabama farmers, we thank all the senators and representatives who listened to their constituents and allowed us to offer a health coverage option for our members."
Alfa Health Plans will be modeled after similar programs in 10 other states where Farm Bureau members save 30-60% on the cost of health coverage. Alabama's legislation incorporates 18 changes from the Senate-introduced bill which were negotiated by Faulkner to address questions raised by legislators and other organizations. The result is the most comprehensive Farm Bureau health plan legislation in the country, offering stronger consumer protections, accountability and economic benefit to the state and local communities.
Orr hailed the legislation as a victory for farmers, small businesses and the health care market.
"For me, this is a freedom of contract issue," Orr said in introducing the bill Thursday. "This is for individuals and an organization — the members of that organization — being able to engage in a contract for health coverage, for health care. The government has no role or a very limited role — should have no role — in that.
“We’ve allowed the government regulations and laws, even with good intentions, to strangle innovation and change in health care because, once a model is in place, the market becomes invested in that model and can’t change for fear of losing market share or money," Orr previously stated. "The regulatory system has created this woefully expensive health care model and will resist change at every turn because so much is invested in the status quo."
The Senate defeated three amendments which could have derailed Alfa Health Plans in the final days of the session and would have undermined affordability of health coverage.
An amendment by Sen. Linda Coleman-Madison, D-Birmingham, to place Alfa Health Plans under Alabama Department of Insurance enforcement failed 9-24 with one abstention. Voting for the amendment and against the Federation position were: Sens. Greg Albritton, R-Range; Merika Coleman, D-Pleasant Grove; Coleman-Madison; Vivian Figures, D-Mobile; Kirk Hatcher, D-Montgomery; Wes Kitchens, R-Arab; Bobby Singleton, D-Greensboro; Rodger Smitherman, D-Birmingham; and Robert Stewart, D-Selma.
A second amendment by Sen. Singleton to require coverage of pre-existing conditions failed 9-23 with one abstention. Voting for the amendment and against the Federation position were: Sens. Albritton; Coleman; Coleman-Madison; Figures; Hatcher; Tim Melson, R-Florence; Singleton; Smitherman; and Stewart.
The third amendment, also by Sen. Singleton, would have raised the tax rate for Alfa Health Plans from 1.3% to 1.6%. It failed 8-25 with one abstention. Voting for the amendment and against the Federation position were: Sens. Albritton; Coleman; Coleman-Madison; Figures; Hatcher; Singleton; Smitherman; and Stewart.
Voting against final passage were Sens. Singleton and Figures.
Sen. Jack Williams, R-Wilmer, joined Orr in advocating for the bill on the Senate floor.
"This bill is so important to our organization with the farmers," Williams said. "It’s bad when your house note is $700 or $800 a month, and your health insurance is $2,400 a month. It’s very hard to make it. If they can cut that in half, it would be such an easy thing on the farmers coming on. If we don’t do something to help our young farmers out, we’re not going to have any because they’re going to have to go to work somewhere else just to get insurance."
Federation External Affairs Department Director Brian Hardin encouraged members to thank legislators who stood with Alabama farmers throughout the session.
"The strength of the Federation is our grassroots membership. When we're united on an issue, we're hard to beat," Hardin said. "No legislation in my career demonstrates that more than passage of Alfa Health Plans. Future Federation leaders and staff will talk about today in the same way we remember historic bills like current use.
"Federation members sharing their stories with legislators made the difference. Now, we need to go back to those senators and representatives and express our gratitude. Take time this week to call, text or send a handwritten note to the lawmakers who stood with Alabama farmers, despite fierce opposition," Hardin added.
The Federation hopes to roll out Alfa Health Plans later this year.
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