Alfa health plan bill passes House after hours-long debate

MONTGOMERY, Ala. (WIAT) -- Strong debate rang out inside the chambers of the House of Representatives Thursday.

It's all about a bill they ultimately passed, allowing the Alabama Farmers Federation to offer health plans to its members. They would be able to cover things such as prescriptions and doctor's visits. But how much oversight does the farm bureau need?

"It's quite shady," said Rep. Juandalynn Givan (D-Birmingham). "This is real shady business right here. Real shady..."

That business had to do with stripping a part of the bill. It would have allowed the Department of Insurance to enforce Alfa's health benefits. Rep. David Faulkner (R-Mountain Brook), bill sponsor, argued there's enough oversight in the bill. He said the department can already help Alfa's members make disputes about their coverage.

"You keep saying, 'the protection piece'. There's already all the protection that's needed," said Faulkner in debate. "And, the Department of Insurance does not regulate self-funded plans."

Faulkner said those plans will be offered with the help of Tennessee's Farm Bureau. For two hours, he argued with his colleagues, saying other protections in the bill are strong. Faulkner said the dispute process and oversight would be similar to other insurance companies.

"They might be committing some 'irregularities,'" said Rep. Mary Moore (D-Birmingham). "Is that gonna be okay? So, it's okay as long as it's self-funded if they commit any irregularities? Don't you think they need a little oversight?"

Rep. Chris Blackshear (R-Phenix City) said "We'll have people from Tennessee helping our Alabama farmers. We're gonna have people from Minneapolis helping our Alabama farmers. I think it'd be good to have somebody from the state of Alabama having the backs of Alabama farmers, and not everything done out of state."

"Insurance is a little bit more than just saying 'give me the money and I promise, I plan to take care of you,'" said Rep. Frances Holk-Jones (R-Foley).

In a statement, Sophie Martin with Blue Cross and Blue Shield of Alabama said in part quote, "Removing any oversight would mean the only option consumers and healthcare providers have is hiring a lawyer and filing a lawsuit. This is not sufficient – and no other health plan operates under such circumstances."

The bill states that health plans cannot be cancelled or modified as a result of a medical event.

Preston Roberts, director of agricultural legislation for Alfa, said there were enough protections in the bill.

"Our position was that it needed to come off. It was unnecessary. There were a lot of consumer protections that have been added to this bill," he explained. "And, it is a strong bill as it is."

Roberts said Alabama's farmers need the help more than ever.

"We're hearing from our members that they're paying astronomical costs for health coverage. So, we're really hopeful that this bill will provide them some relief as we've seen in some of these other states that have adopted it," said Roberts.

The bill passed in the House as amended, removing the provision giving the Department of Insurance enforcement authority. It will now go to the Senate for a committee vote.