Healthcare rate hike may heavily impact farmers
Minnesota, Iowa and many other states will experience sharp increases in health insurance premiums for individual plans.
Rate increases are expected to range from 35 percent to 66 percent, a decision made by the insurance companies.
It’s a difficult situation for farmers because they often purchase insurance on their own. They are among the 300,000 Minnesota residents who don’t obtain insurance through an employer.
Blue Cross and Blue Shield of Minnesota has left the individual market, leaving people to scramble for options.
Many Minnesotans are concerned about the impacts of the existing healthcare model. Paul Sobocinski of the Land Stewardship Project is working to inform farmers of what’s going on and decide what to do.
“Before you get to the exact solution, you have to get people to recognize there is a serious problem,” he said. “Profit is driving the model rather than people’s health. We need a system that’s centered around people. We need much better insight and digging apart of this problem by the Minnesota Legislature.”
Ryan and Tiffany Batalden, farmers based in Lamberton, have been directly affected by the healthcare turmoil. Ryan has Type 1 diabetes and was covered through MCHA before it dissolved. The Bataldens switched to BCBS to allow them to continue seeing the same doctors.
“We were only on our new plans for about six or so months when we were informed that our premiums would be increasing 49 percent,” Tiffany Batalden said. “We chose to stay with Blue Cross because they were the only provider that allowed us to keep similar benefits with our same doctors.
“And then, in July I received emails that both of our plans are being terminated Jan. 1, 2017. I am frustrated to say the least. I know that I have to find new coverage but I am not confident it will be comparable, or that we will be able to keep our doctors who have great knowledge of our health history. The proposed rate increases announced today are outrageous and unsustainable.”
Sobocinski said rate increases will hit all farmers at a time when crop prices are down and things are tough. Having to use more income to cover health insurance, he said, will have a negative impact on their bottom line.
“For some people, they and their family will qualify for MinnesotaCare if their income is low enough; they will be in good shape, but for a third of the people who have sufficient income or are in a better financial situation, they will see a drastic increase in premiums, which is not good for farmers,” Sobocinski said. “It won’t leave them dollars to reinvest in their businesses — buying machinery, equipment, things that are part of their farming operation.”
Meanwhile, Minnesota Farm Bureau President Kevin Paap said he wasn’t sure exactly what to expect from the rate increases, but that the BCBS decision to leave the individual market was an immediate concern, as the Bataldens experienced.
“Some people have gotten notice that they will no longer be eligible for insurance under their policy,” Paap said. “It’s a significant problem, and we have more questions than answers.”
Sobocinski said while the ACA affects the entire country, the federal law does allow states to work on their own solutions. He said one solution could be to raise the income level eligibility for MinnesotaCare.
“Right now it’s at 200 percent of poverty level,” Sobocinski said. “If we increased it to 275 percent, it would cover more people in crisis.”
In the end, however, the biggest need, he said, is public oversight over the insurance companies at the corporate level.
The Land Stewardship Project, Minnesota Nurses Association and TakeAction Minnesota issued a statement Sept. 1:
“Today we are reminded once again of the need for an ongoing discussion about the state of health care coverage in Minnesota and how to ensure that all Minnesotans have quality, affordable health care.”
