Amid a broader push by Senate President Ben Albritton to help rural areas, lawmakers are moving forward with a proposal that would allow the Florida Farm Bureau to offer largely unregulated health coverage to its members.
The Senate Banking and Insurance Committee on Monday unanimously approved the proposal (SB 480), which would clear the way for “medical benefit plans” that would not be subject to the same state and federal regulations as health insurance. The House Health Care Facilities & Systems Subcommittee will take up the House version of the proposal (HB 497) on Tuesday.
Senate sponsor Nick DiCeglie, R-Indian Rocks Beach, said the bill would help “Florida Farm Bureau members, particularly farmers and ranchers who face challenges securing affordable health-care options.” He also linked it to Albritton’s broader initiative, dubbed the “rural renaissance.”
“This coverage is part of the rural renaissance of Florida’s smaller and less-densely populated regions where access to health care may be an issue,” DiCeglie said.
But the proposal drew objections Monday from the American Cancer Society Cancer Action Network and the American Heart Association.
The federal Affordable Care Act and state insurance laws place numerous regulations on health insurers. As an example, the Affordable Care Act requires insurers to make coverage available without exclusions for pre-existing medical conditions.
The Senate and House bills would require a disclaimer on the Farm Bureau plan saying, in part, "Notice: This medical benefit plan is not a health insurance policy or health maintenance contract and is not subject to the regulatory requirements and consumer protections that apply to health insurance policies or health maintenance contracts under the Florida Insurance Code.” Also, the disclaimer would say that the “nonprofit agricultural organization offering this medical benefit plan is not an authorized insurer or authorized health maintenance organization.”
Susan Harbin, senior director of government relations for the American Cancer Society Cancer Action Network in Florida, said her organization is concerned the proposal would allow a health plan that would not cover pre-existing conditions.
“Our biggest concern is that this doesn’t guarantee coverage for people with pre-existing conditions, and obviously the state and federal (insurance) laws require that,” Harbin told the Senate committee. “Because these plans don’t have to comply, people with cancer could be dropped from coverage if they’re diagnosed with cancer, if they have a suspicious screen. There’s not a lot of safety nets put in place, and we’ve seen this in other states.”
Harbin later added, “We just don’t want consumers to be left on the hook with a huge bill or, even worse, being dropped from coverage in the event of a medical emergency.”
A Senate staff analysis said Farm Bureau organizations in other states offer such health plans. Also, similar plans have been offered by religious organizations through what are known as “health care sharing ministries.”
DiCeglie said applications for farmers to take part in the Farm Bureau plan would include details of what would be covered. He also said farmers wouldn’t have to take part if the plan “doesn’t fit their needs.”
“It really, really is a super-narrow segment of our population, and, for the obvious reasons, getting that affordable (coverage) and access to health care for our rural communities, especially our farmers, is difficult to do,” DiCeglie said.
