What They're Not Telling You About Farm Bureau Health Plans

Blue Cross and Blue Shield of Alabama's mission is to provide Alabamians access to quality, affordable healthcare because we care about their health, financial security, and peace of mind. Unfortunately, the proponents of ALFA's "health" plan, including Mr. Flowers in his column last week, have chosen to engage in false and misleading attacks on Blue Cross and Blue Shield of Alabama instead of arguing over the supposed merits of their plan. The reason for this is simple: they know the facts are not on their side, and that ALFA's proposed unregulated health plan is bad for patients, hospitals, doctors and the State of Alabama.

Put simply, ALFA is seeking legislation that would give them ability to deny coverage to anyone with a preexisting condition, something other health insurers are not permitted to do. Moreover, the legislation ALFA wants the legislature to pass would not require them to provide coverage for necessary services like primary care, prescription drugs, emergency service or maternal care - all coverages that are required under other insurance plans. ALFA's simple goal is to limit the people in their plan to younger healthy people - leaving those they deny left to pay more for the coverage that they desperately need. The Legislature should reject this proposal.

In truth, Alabama's health insurance market is open to all carriers in all counties. Competition is a good thing, and at Blue Cross and Blue Shield we welcome competition.

But competition means all those engaged must play by the same rules. What ALFA is seeking is the ability to play by a different set of rules from every other health insurer in the State, or more to the point, to be completely exempt from all the rules.

Currently, all legitimate health insurance plans are regulated by the Department of Insurance, the federal government or both, and all have consumer protections in place for a reason. Blue Cross opposes Alfa's Farm Bureau Health Plans (FBHP) because they would be completely free from any oversight and will discriminate against Alabamians based on pre-existing conditions like cancer or diabetes. This means denying people the coverage they need, charging more, or refusing to cover certain conditions. Since these plans are not regulated, they also put Alabamians at greater risk of fraud, financial ruin, and unpaid claims.

This debate is not truly about farmers. ALFA plans to make these plans available to all their "members" which includes anyone who has an ALFA automobile or homeowners' policy - or who pays the $35 needed to become a member. Despite their rhetoric, ALFA's plan is not designed to help Alabama farmers. In fact, according to the Agriculture and Applied Economics Association, 64% of farmers nationwide suffer from pre-existing conditions, meaning most Alabama farmers - whose average age is 59 - would be rejected from coverage under the ALFA plan.

Important services required under Alabama law like mammograms, colonoscopies, prostate screenings, prescription drugs, mental health and maternal services allow for the right care and better health outcomes for Alabamians. Unfortunately, none of these services would be required to be covered under the Farm Bureau Health Plan. If someone needs life-saving hospital care or prescription drugs - benefits and coverages can be capped - causing major barriers if their treatment is more than they can afford. These gaps in coverage might save ALFA money, but would leave patients vulnerable.

More than 30 nonprofit organizations are opposed to FBHPs including the American Cancer Society, American Heart Association, Leukemia and Lymphoma Society, and the American Diabetes Association. According to these organizations, good coverage should be uniformly regulated to ensure that customers' financial and medical interests are protected. These nonprofits support innovative efforts to improve health coverage affordability and access, but not if the ability for patients to receive the care they need is compromised.

Finally, under another law that would not apply to ALFA, all other health insurers in the individual market are required to spend at least 80 percent of the premiums they take in on medical care for their customers. Blue Cross and Blue Shield of Alabama consistently exceeds this requirement and typically spends almost 90 percent of every premium dollar on our customers' healthcare. We believe that this reasonable consumer protection, as well as those discussed above, should apply to ALFA as well.

It is unfortunate that others have decided the only way to pass this legislation is to attack Blue Cross, rather than convincing people that their plan is a good one. Now you know the reason they have engaged in these tactics.

We know Alabamians have a choice when it comes to choosing their health insurance carrier and we don't take that for granted. Our customer base is largely due to our longstanding "customer first" philosophy - treating our customers with compassion, urgency, and respect, and putting them at the center of everything we do. It's also the reason why so many people continue to choose, or return to, Blue Cross and Blue Shield of Alabama.