The Agriculture Committee heard testimony on February 13 on a bill aimed at providing affordable health benefits to Nebraska farmers and ranchers.
Under LB1313, sponsored by Norfolk State Senator Robert Dover, health care that provides benefits under self-funded arrangements sponsored by certain nonprofit agricultural organizations and managed by licensed third-party administrators. Benefit plans are not subject to insurance regulation.
The organization sponsoring this plan must have been established for the primary purpose of promoting programs for the development of rural communities and the economic stability of Nebraska's farmers, among other requirements.
Dover said he introduced the bill on behalf of the Nebraska Department of Agriculture to provide “family-friendly alternative health care.” She said fully underwritten plans will cover hospital visits, hospitalizations, preventive care, emergency room services, obstetric care, mental health care and substance abuse treatment.
“The goal of LB1313 is simple: provide high-quality, affordable health care options to those who want them,” Dover said.
Before providing health care benefits, organizations would be required to submit certification to the state insurance department confirming that they meet the bill's requirements.
The risks assumed by the plan may be reinsured by a company licensed to operate in Nebraska.
Mark McHargue testified in support of the bill on behalf of the Nebraska Department of Agriculture and several other agricultural organizations. For many farmers and ranchers, Affordable Care Act premiums are often unaffordable, McHarg said, so many farmers and ranchers cannot afford health insurance or have a spouse who works for an employer that offers health insurance. He says he never relies on anyone.
He said in a 2023 survey, 81% of farm and ranch association members said the cost of health insurance was one of their main concerns.
“There is a great need for more affordable health insurance that meets the needs of our members and, in some cases, those who do not qualify for federal health insurance subsidies,” McHarg said.
Dawn Kucera testified in support of LB1313 on behalf of the Nebraska Farm Bureau Board. He said the current health insurance market discriminates against self-employed people and small business owners because they cannot take advantage of the discount rates available in employer-sponsored plans.
Kucera, who along with her husband owns a farm and agricultural business near Madison, pays nearly $16,000 a year for a subsidized ACA plan and between $20,000 and $40,000 a year in deductibles and copays. Told. Premiums and out-of-pocket costs for unsubsidized ACA family plans are even higher, she says.
“These high health insurance premiums and out-of-pocket medical costs have taken a huge toll on our bottom line, and years of drought and low commodity prices have left our farming and agricultural operations on very thin ice. Sometimes even,” Kucera said.
He said plans offered under LB1313 will cost anywhere from 40% more than unsubsidized plans offered under the ACA because they are priced using pre-existing conditions and individualized medical underwriting. He said it would be 60% lower.
No one testified against the bill, and the committee took no immediate action on it.
