Senate passes bill to allow farmers to have a group health insurance plan

May 1, 2025 – MONTGOMERY, AL – The Alabama Senate passed legislation that would allow the Alabama Farmers' Federation to sell health insurance to their members.

House Bill 477 (HB477) is sponsored by State Representative David Faulkner (R-Mountain Brook). HB477 was carried in the Senate by Senator Arthur Orr (R-Decatur).

"Florida (the Legislature) just passed this," said Sen. Orr. "Tennessee has had this for twenty years."

Sen. Jack Williams (R-Wilmer) – a Mobile County farmer - spoke in favor of passing the bill.

"Insurance for my 27-year-old grandson, his wife, and baby costs $2,700 a month," said Sen. Williams. "They don't make a thousand dollars a week," on the Williams farm. "Who has to cover that? I do."

Williams said that young farmers are having to work off farm jobs for the health insurance.

Senator Linda Coleman Madison (D-Birmingham) said, "I am concerned about farmers and their families. My family are farmers in Tuscaloosa."

Coleman-Madison introduced an amendment that would have made the Alabama Department of Insurance the regulatory authority members can turn to if their insurance claim is denied.

Coleman Madison said that under the bill currently if there is a dispute with the insurance company "there should be some sort of recourse." The only option under the bil "is to go to court."

Orr opposed the Coleman Madison amendment.

"If they lose their credibility nobody is going to get their insurance," Sen. Orr said. "It doesn't make sense that they would burn their own members."

This insurance plan would be managed by Tennessee Farm Bureau. The Tennessee product is contracted with United Healthcare.

"What I don't like is that we have oversight over all other companies in the state, but for this one we do not," said Senator Bobby Singleton (D-Greensboro).

"They do cover maternal care," Orr answered in response to a statement by Singleton.

"There are 1.5 million Alabamians under an employers' plan – that is what I have," said Orr. "With employer plans there is no regulation at all. Why would a member plan have regulation that an employer plan does not?"

The Senate voted down the Coleman Madison amendment.

Singleton offered an amendment that would prevent the plan from denying coverage to applicants with a pre-existing condition.

"People are going to get sick. Some are sick now," said Singleton. "They have farmers breaking bones falling off tractors and other things. They are breathing in ammonia. Some of them have got asthma, some have diabetes."

"I have got farmers all around me," said Singleton. "They are calling me and telling me to support this bill. They are around ammonia and chemicals all the times. That gets in your lungs. They are around diesel every day and gasoline."

"Will this benefit plan really benefit them?" Singleton said.

"This is the most comprehensive bill in the country," said Orr. "You have a right to contract."

"You have a right to contract, but I hope that it is to the benefit of the consumer," said Singleton. "If I get this insurance, I need the pre-existing condition clause on there."

"Healthy people become unhealthy," said Orr. "Once you are on the plan, you can't be dropped from the plan. Over twenty years you tend to fall apart."

"If they are already insured can they get insurance?" asked Singleton.

"That was what the ACA (Affordable Care Act) was all about," said Orr. "This is not an ACA endorsed plan. The wider farming community does not qualify for the ACA."

Orr urged the Senators to vote No on the Singleton amendment.

The Senate voted down the Singleton amendment 25 to 8.

"Once somebody gets denied for a preexisting condition I don't want you to come running back here to me saying that we need to get this on here because my farmers are being denied," Singleton said.

SB477 passed the Senate 30 to 2. It already passed the House of Representatives so now goes to the Governor's desk.

Tuesday will be Day 28 of the 2025 Alabama regular legislative session.