Ivey Signs ALFA Health Insurance Bill
HB477 Will left Alfa offer self-financed health coverage to members
Alabama Governor Kay Ivey signed HB477 into law on Wednesday, May 7. The Act allows the Alabama Farmers Federation (ALFA) to offer a self-financed health care plan to members of the organization.
Gov. Ivey praised the bill at the signing ceremony, saying, “I was pleased to sign HB 477 to create a good health coverage option that aims to help our farmers,” Ivey said. “I appreciate Sen. Arthur Orr, Rep. David Faulkner, Jimmy Parnell and all the folks at Alfa for their work on this effort.”
Federation President Jimmy Parnell thanked the governor for her support of farmers.
“We thank Gov. Ivey for signing this important legislation into law,” Parnell said. “Farmers and other small business owners face incredible challenges when it comes to health coverage. The Alabama Farmers Federation is excited to help our members address soaring health care costs by providing an option through Alfa Health Plans. Gov. Ivey is a pro-business governor whose track record for encouraging economic growth is unparalleled. This legislation will help remove another barrier that is preventing farmers and entrepreneurs from investing in their businesses and communities. We appreciate Gov. Ivey’s steadfast leadership for the people of Alabama.”
The bill was sponsored by Alabama State Representative David Faulkner (R-Birmingham) in the House, and State Senator Arthur Orr (R-Decatur) in the Senate.
In bringing the bill to the House floor, Faulkner said:
“We all know how much agriculture and forestry means to this state. Agriculture and Forestry are Alabama’s largest economic forces. They directly support 275,000 jobs. They pay $15 billion in wages and contribute almost $80 billion to local and state economies. Our number of Alabama farms, though decreased, by 8% from 2017 to 2022. Members, 95% of Alabama’s 37,000 farms are family-owned.
“The rising cost of healthcare is a significant burden for our farmers. As legislators, there is little we can do about fertilizer costs or the price of cotton, but we can make a difference in one of the largest household costs for many farmer families and other citizens in Alabama regarding their healthcare coverage.
“These ALFA health plans have the potential to save farmers and other self-employed families 30% to 60% on their health care coverage,” Faulkner said.
According to Faulkner, ten other states have similar plans in place, which have been quite effective. The Tennessee Farm Bureau has had a comparable plan since the 1940’s, and it has a 98% retention rate.
The plan will utilize the UnitedHealthcare network, and be administered by the Tennessee Farm Bureau.
Critics of the bill have pointed out that it enables ALFA members to avoid some of the provisions of the Affordable Care Act. Others have questioned the decision to involve UnitedHealthcare, given that company’s very low rate of patient satisfaction.
With Governor Ivey’s signature, the Act will take effect June 1, 2025.
The full text of HB477 is HERE.
