30+ Alabama organizations reiterate opposition to ‘junk health plans’
30+ Alabama organizations reiterate opposition to ‘junk health plans’
American Heart Association, Women's Foundation of Alabama, Alabama Arise among groups expressing concern
MONTGOMERY, Ala. – Alabama lawmakers should oppose legislation allowing farm bureaus to sell unregulated health plans, according to a letter that more than 30 Alabama health care and community organizations sent to lawmakers. The letter urges legislators to oppose the plans authorized under HB 477 and calls for regulated and inclusive options to close Alabama’s health coverage gap.
“These plans create a false sense of security for consumers, who may only discover the gaps in coverage when they face a serious illness,” the organizations wrote. “This lack of comprehensive coverage not only undermines the health of Alabamians but could shift costs to the broader health care system as patients are forced to delay or forgo necessary care.”
Read the organizations’ full letter here.
The House earlier this month passed HB 477, sponsored by Rep. David Faulkner, R-Mountain Brook. The Senate Banking and Insurance Committee is set to consider the bill Tuesday morning. If the committee approves the bill, the full Senate could vote on it later this week.
‘Alabamians need real solutions to close the coverage gap’
An estimated 200,000 Alabamians live in the coverage gap, earning too much money to qualify for Alabama Medicaid, but not enough to afford private insurance. While closing this coverage gap is a priority, advocates say that the proposed “junk health plans” would not help Alabamians.
“Alabamians need real solutions to close the coverage gap—not junk plans that offer little protection when people need it most,” said Debbie Smith, Alabama Arise’s Cover Alabama campaign director. “HB 477 would take us in the wrong direction by promoting unregulated plans that can deny coverage and leave families on the hook for devastating medical bills. We urge lawmakers to prioritize comprehensive, affordable coverage that truly meets the needs of our communities.”
The letter, sent earlier this year in opposition to the Senate version of the legislation, provides numerous reasons why these plans would be cause for concern. One notable factor is the plans’ lack of regulation.
“These products would have no oversight from the state Department of Insurance, leaving consumers in the lurch if they have any problems with their coverage,” the groups’ letter said.
The signees encouraged lawmakers to find a better solution to closing Alabama’s coverage gap. Expanding Medicaid would close the coverage gap immediately, but other hybrid options also exist.
“We support innovative efforts to improve health coverage affordability and access, but not if these efforts compromise patients’ ability to receive the care they need,” the letter said. “We ask you to partner with us to champion policies that strengthen access to comprehensive, affordable health care for all Alabamians.”