The Alabama House overwhelmingly passed legislation on Thursday that would allow the Alabama Farmers Federation to provide health coverage that is not classified as traditional health insurance, also known as farm bureau health plans.
According to ALFA, farm families across the state are caught in a healthcare gap, facing some of the highest out-of-pocket costs in the state with few affordable options.
Facing premiums as high as $30,000 annually for a family of four, ALFA have rallied around HB477, sponsored by Rep. David Faulkner (R-Mountain Brook), which cleared the House today in a decisive 98-1 vote following extensive debate.
The bill now heads to the Alabama Senate, carrying momentum, but also drawing vocal opposition from healthcare groups and insurers.
According to the Federation, skyrocketing premiums have left many farmers with no good options. These ALFA health plans, modeled after those already operating in 10 other states, would be offered only to qualifying members of agricultural organizations.
Faulkner emphasized that the plans are aimed at individuals who don’t qualify for Medicaid or Affordable Care Act subsidies and lack access to employer-sponsored coverage — a common scenario for farmers and small business owners.
“They have become more appealing as skyrocketing premiums forced farmers to choose to go uninsured or sacrifice labor and investment in their operations to secure coverage through off-farm jobs,” Brian Hardin, Director of External Affairs for ALFA, told Yellowhammer News.
“The significance of ALFA Health Plans can’t be overstated,” Hardin said. “A family farm saving up to $18,000 a year on the cost of health coverage could mean economic survival. Passage of this legislation could literally determine whether some Alabama farmers are able to continue raising our food and fiber.”
The bill passed the Alabama House on Thursday after adopting a series of amendments passed by the House Health committee earlier in the week designed to address concerns raised by hospitals, insurance industry representatives and members of both parties.
Faulkner said two of the adopted amendments were especially significant: one that bars coverage from being canceled or premiums increased due to a medical diagnosis, and another that adds prescription drugs, mental health care and substance abuse treatment to the required benefits. Both provisions were priorities during last week’s committee discussions and were accepted as friendly amendments.
The committee also approved an amendment giving the Alabama Department of Insurance authority to enforce the provisions of the bill — a move Faulkner opposed. He argued that because the proposed coverage model is a self-funded benefit plan, not traditional insurance, it falls outside the department’s typical regulatory scope. “No other state has handed over the enforcement of these plans to their insurance departments,” he said, adding that the Alabama proposal includes more built-in oversight than Farm Bureau plans currently operating in 10 other states.
Not all proposed changes made it into the final version of the bill.
Earlier this week, amendments that would have required ALFA to report annual enrollment numbers and provide advanced notice before making changes to annual benefit caps were voted down.
Supporters of those provisions argued they would improve transparency and consumer protections, while opponents said they risked creating unnecessary red tape and limiting the flexibility needed to keep the plans affordable.
Thursday was day 21 of the 2025 legislative session.
Grace Heim is a state and political reporter for Yellowhammer News. You can follow her on X @graceeheim or email her at [email protected].
