Q. Why does Indiana Farm Bureau want to offer health benefit plans to its members?

A. For the past several years, members have asked repeatedly for INFB to find a way to offer more choices to reduce their health care costs. A recent survey found that 78% of Hoosier farmers say the cost of health care is impacting their business. Additionally, 48% under 65 have chosen not to get treatment for a health condition because of the cost.

Q. Who will benefit from INFB’s health benefit plans? 

A. Members in all 92 counties who do not have access to group insurance plans or work somewhere for health benefits, such as farmers, those who work on farms, agribusiness professionals and rural entrepreneurs with fewer than two employees, or those who do not qualify for significant Affordable Care Act subsidies.

Q. Why not use an existing option? 

A. Through a year of extensive research on the health care benefit plans currently available, we have found there isn’t a single option that creates significant savings for the sole proprietor. Plans like the ones offered through the Indiana Chamber of Commerce benefit small businesses with two or more employees. Since a vast majority of INFB members are sole proprietors, they do not qualify for those types of health plans.

Q. What’s the legislative fix? 

A. For INFB to offer a health care option for sole proprietors – those with fewer than two employees – we need a statutory change. The statutory change will allow INFB to offer a non-insurance, high quality and more affordable health benefit plan to our members.

Q. Why is it called a health benefit plan and not insurance? 

A. Our solution creates a health benefit plan for our members. Since it will not meet all of the requirements under ACA and not all applicants will receive coverage due to certain preexisting conditions, the solution we are pursuing can’t be called “insurance.” Importantly, the health benefit plan will function just like any other traditional health insurance plan.

Q. What would INFB’s health benefit plan cover? 

A. Our health benefit plan will be robust. Through a third-party administrator, we’ll be able to offer plans that feature many essential health benefits including, but not limited to, office visits, hospitalization and telemedicine, prescription drug benefits, wellness services, maternity and pediatric care, outpatient services, mental health and substance-abuse treatment, emergency room services, dental and vision coverage, rehabilitative services and devices, and laboratory services.

Q. Do other state Farm Bureaus offer this type of health benefit?

A. Yes. Collaboration with other state Farm Bureaus was part of our extensive research. Three of them – Tennessee, Kansas and Iowa – have pursued a similar approach. Tennessee Farm Bureau in particular has offered a health benefit plan to their members for more than 25 years.

Q. How will INFB create a more affordable health care option?

A. Since each applicant will be individually rated based on their medical history, INFB will be able to offer coverage for significantly less than similar coverage under the ACA.

Q. Will members be denied coverage?

A. Our goal is to cover as many members as possible. To create a health benefit plan that is more affordable, some applicants may not qualify for INFB’s plan. In Tennessee, for example, nearly nine out of 10 applicants receive coverage.

Q. Why not cover everyone?

A. Our solution will help many of our members, but will not address every individual health care need. Our members stressed the importance of cost savings throughout this process. Without cost savings, we wouldn’t be able to offer something substantially different than what is on the market today. This innovative approach will create substantial savings for many of our members.

Q. What happens if a member gets sick? Will I lose my coverage if I get sick?

A. Once members are accepted and pay their premiums, they will not be denied coverage as long as they continue to be an INFB member. Similar to traditional health care plans, premiums may increase as the performance of the pool of a particular plan changes or as the individual ages.

Q. Will this plan affect the Affordable Care Act marketplace?

A. INFB partnered with Lewis & Ellis – a nationally respected actuary firm – to analyze the impact on the ACA marketplace. They concluded that our plan would have a minimal impact, accounting for only 1% to 3% of the Indiana individual market. More information can be found at www.INFBhealthcare.org.