Wisconsin Farm Bureau Health Plans

For more than 100 years, Wisconsin Farm Bureau has existed to serve its members. WFBF has a long history of addressing member needs in all 72 counties and adding value through member benefits. WFBF is looking to address the cost of health coverage and the options to provide access to more affordable coverage for our members. Several other states have adopted similar legislative initiatives to allow Farm Bureau Health Plans.

The goal is to offer an affordable product to meet the health care needs of members’ families. This requires plans to be robust, cost-effective, and flexible to provide the savings and assurances that our members and farm families have come to expect Wisconsin Farm Bureau for over 100 years.

To create plans like those offered by other state Farm Bureaus we need to amend Wisconsin law to allow a non-profit agricultural membership organization incorporated in Wisconsin to offer a non-insurance health benefit plan to its members.

The proposed legislation would allow Farm Bureau to offer its members a rated health plan option by exempting Farm Bureau Health Plans from regulation by the Office of the Commissioner of Insurance. This exemption is like other association plans and self-insured businesses who offer coverage in Wisconsin.

Because the plan is defined as “not insurance” because it allows the creation of individual non-ACA compliant member health care benefit coverage that is fully underwritten and individually rated. This format has allowed plans in other states to offer coverage to members that is 30 to 60% lower than those otherwise available.

Most Wisconsinites don’t have to worry about where they get their health insurance. It’s either an employment benefit or they have access to coverage through the government. That insulates them from the chaos individuals and small businesses have faced getting health care for decades.

Too many farmers are currently faced with a choice between sending someone to work another job just to have access to employer-based health coverage and paying unsubsidized rates for plans available from the Affordable Care Act. ACA premiums can be an excessive burden especially for family coverage if they don’t qualify for a premium subsidy. Deductibles have also increased to the point that some farm families can spend significant percentages of their annual income before receiving any benefits from their coverage.

We heard consistently from our members that health care costs are impacting the financial stability of the family farm and rural communities. Many of our members go without coverage. Due to the lack of affordable options, WFBF is moving forward with a plan to offer its members access to a more affordable health care option.

Each applicant will be individually rated based on their medical history, which will allow Farm Bureau to offer coverage at a significantly lower cost than similar coverage under the Affordable Care Act (ACA). To achieve those savings, some applicants may not receive health benefit coverage although the goal will be to cover as many as possible. Others may have waiting periods for conditions diagnosed prior to obtaining coverage. In the event that a person does not qualify for the health benefit coverage they would still be eligible for ACA coverage. This plan adds to the options for people to get coverage and will increase coverage in Wisconsin.

Farm Bureau will offer coverage that will include office visits, hospitalization, preventative care services, emergency room services, maternity care, prescription drug benefits, mental health, and substance abuse. Members can select their level of coverage.

With Farm Bureau Health Plans, there is no open enrollment period. You can switch to a Farm Bureau Health Plan whenever you need to, for whatever reason. There is no need to re-sign up, report a change of income or do any extra end-of-the-year paperwork when you enroll in a Farm Bureau Health Plan.

When members receive coverage, their experience will be similar to traditional health care coverage. Once a contract is issued, members will receive a welcome packet containing health plan cards and other information about the process for customer service and claims.

Once members are accepted, maintain their Farm Bureau membership and pay premiums, they will not be denied coverage. Plans will have no annual or lifetime limits.

These plans would be underwritten, which means not everyone under age 65 who applies for coverage is accepted, but the goal is to always work with a client to see what can be made available.

The approval rating in other Farm Bureau Health Plans ran about 85-90%. We would do all we can to get coverage for people, so they have an option and don’t go uninsured.

Those who stand to gain the most are Wisconsinites who don’t have access to an employer sponsored plan and who have income above the levels that qualify for subsidies under the ACA. Typically, these Wisconsinites are buying their own individual coverage or are uninsured.

The plans can benefit many Wisconsinites, but are best if one of the following applies to you:

• You're currently uninsured or self-employed.
• You're considering early retirement but aren't eligible for Medicare.
• Your current employer doesn't offer coverage or that coverage is too expensive.
• You can't afford coverage through your spouse's employer.
• You're currently enrolled in an ACA (Affordable Care Act) plan but are NOT getting or getting little subsidies to offset the cost.
• You're 26 years old and coming off parent’s coverage.

Plans will be available to any state Farm Bureau member under the age of 65 would be eligible to apply for Farm Bureau Health Plan coverage. The plans are typically attractive to those who do not qualify for either Medicaid or ACA premium subsidies. The typical cost to become a state Farm Bureau member is an annual fee of $65.

A Farm Bureau membership would be required to maintain your health plan.  Members who do not renew their membership will not be eligible to continue with their health plan.

Farm Bureau Health Plans are basically run the same as any self-funded plan already being offered in the state by a medium- to large-sized employer to its employees. If a policymaker is comfortable with how those plans are run, they should have no issue with Farm Bureau Health Plans.

We project that the Farm Bureau Benefit Plans will offer savings of 30 percent to 60 percent compared to current offerings on the ACA market. Those savings are a direct result of the underwriting practice and administrative efficiencies.

Adding Farm Bureau Health Plans as an additional option in Wisconsin is unlikely to have any substantial impact on ACA plan enrollment as almost all exchange enrollees are receiving federal subsidies. Anyone eligible for an ACA subsidy is unlikely to join a Farm Bureau Health Plan as subsidies are only available on the exchange.

In Iowa, four out of five who were projected to sign up were uninsured. In other words, these plans have not adversely impacted the insurance market because many of the FBHP members would be uninsured otherwise. There has been some thought that these plans might make the rest of the insurance market healthier as they cover many older and more expensive rural Americans and prevent them from waiting to pick up exchange coverage when they get sick.

While no decision has been made as to how WFBHP will be administered, it is likely we will contract with a third-party administrator to administer the program. For decades, state Farm Bureaus have been operating Health Plans that have provided over 100,000 lives with affordable health coverage. Most notably Tennessee Farm Bureau and other states understand the needs of farm families, and the expertise and experience to function as a third-party administrator to help WFBF provide an excellent product to our members.