A cancer advocacy group is urging Gov. Kristi Noem to veto legislation that would allow the South Dakota Farm Bureau to offer a health insurance program to its members.
David Benson is the government relations director for the American Cancer Society Cancer Action Network in South Dakota. He says they believe everyone should have quality, affordable health care coverage, however, the plans offered under SB 87 will not have to comply with requirements that limit out-of-pocket costs and may not provide coverage of essential health benefits.
South Dakota Farm Bureau says the legislation would allow them to offer a health care coverage option to members that would include a national network of providers and operate much like health care coverage options offered at companies with self-funded pools. The health benefit plan would be offered under a self-funded arrangement through an entity licensed as a third-party administrator, and as an organization certified with the South Dakota Division of Insurance.
Benson says since these health plans are exempt from state or federal regulations, enrollees would be left with no coverage and high out-of-pocket costs if their plan becomes financially unable to pay claims. He says this plan will likely attract younger, healthier individuals, segmenting the insurance market, driving up premiums and making it harder for people who live with serious or chronic diseases to find health insurance.
SDFB says the health plan they want to offer is modeled after one used by the Tennessee Farm Bureau. They say if signed by Gov. Noem, they’ll be partnering with a Tennessee Farm Bureau subsidiary that’s licensed and regulated in South Dakota.
The Independent Insurance Agents of South Dakota are also against the legislation. Spokesperson Carolyn Hofer says unlike other health insurance plans sold in the state, these plans will be allowed to underwrite applicants for preexisting conditions and have the potential to drive up health insurance premiums for everyone due to their option to cover only healthier people. She says people with certain preexisting conditions can be denied coverage under these plans.
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