Alpha, one of Alabama's largest property and casualty insurance companies, says it has no plans to get into the health insurance business: A hotly debated bill in the state Legislature would force Alpha's affiliated Farmers Federation to We will be able to offer health insurance to some members. , and some Alabama news reports this week suggested that Alpha Insurance was behind the move.
“Alpha Insurance is a property and casualty and life insurance company. We do not intend to provide health insurance coverage,” said Jeff Helms, communications director for the Alpha Farmers organization.
Senate Bill 232 does not name Alpha, which started as the Alabama Farmers Federation in 1921 and established an insurance division in the 1940s. However, the bill would allow “nonprofit agricultural organizations” to provide health benefits to members and their families. Alpha officials are targeting small business owners and others who say they are not covered by health plans under the Affordable Care Act, known as Obamacare, but cannot afford market-based health insurance. He says he wants to reach them.
Two Alabama news outlets report that Alpha Insurance, best known for insuring 1 million home and auto insurance policies across the South, is now turning its attention to the health insurance market. Ta. Helms said that's not the case.
Nevertheless, Blue Cross Blue Shield of Alabama, which currently writes health insurance for Alpha members, opposes the plan. A video recording of this week's Alabama Senate Banking and Insurance Committee meeting was not available, but news outlets quoted Alabama Government Affairs Director Blue Cross Blue Shield as saying the bill would create stricter health insurance regulations. He reportedly said that it was intended to avoid this.
Lobbyist Ted Hosp told the committee the bill is not pro-business, just pro-Alpha.
The committee's ranking Democrat, Sen. Bobby Singleton of Greensboro, said Alpha should support expanding Medicaid if it wants to support working people's health coverage, the Daily News reported. Medicaid expansion is opposed by many Republican leaders in Alabama and several other southern states.
The American Cancer Society also questioned the bill, saying it would allow Alpha member organizations to cherry-pick the people they want to cover and would not guarantee cancer treatment coverage like health insurance companies require. he pointed out.
Under current Alabama law, organizations like Alpha Federation do not have the authority to provide health benefits to their members, the bill explains. The proposed changes would allow for a plan similar to Tennessee and five other states, the Daily News noted.
The bill was sponsored by Sen. Arthur Orr, a business owner and chairman of the Senate Finance and Taxation Education Committee.
If approved and signed into law, the measure could have a significant impact on state insurance premium collections, according to a fiscal analysis by legislative staff. The treasurer's report states, “If a member of a nonprofit agricultural organization cancels an existing insurance plan in lieu of a medical benefit option offered by the nonprofit agricultural organization, premium tax revenue to the state general fund will be an indeterminate amount. may decrease.”
If just 15% of Alpha members signed up, the revenue loss could amount to more than $19 million a year, the Alabama Political Reporter noted.
The bill specifies that nonprofit agricultural organizations “shall not engage in the business of health insurance,” but may provide “benefits.”
“Nonprofit agricultural organizations that provide nonprofit agricultural organization health benefits must notify individuals applying for nonprofit agricultural organization health benefits that the benefits are covered by an insurance contract or other product whose offering or issuance is regulated as a business. “You must notify us in writing that the product is not provided through the product and is not covered by insurance in this state,” the bill states.
The bill may have a good chance of passing this year. Alpha is known for its influence in the Alabama State Capitol, and other insurance companies and some insurance agents have repeatedly said that Alpha enjoys significant tax breaks not available to other airlines. He was complaining.
Alpha Farmers has over 300,000 members.
Photo: Alabama State Capitol.
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