North Dakota ag producers could ‘walk away’ from health insurance, Farmers Union warns

BISMARCK, N.D. (North Dakota Monitor) — Seven in 10 North Dakota Farmers Union agriculture producers will be affected by Affordable Care Act subsidies that expire at the end of the year, an official with the organization warned members this month.

Lance Boyer, sales director of financial products for the North Dakota Farmers Union, said the enhanced tax credits that were part of the American Rescue Plan Act approved in 2021 brought down health insurance premiums for members.

After the tax credits took effect, the North Dakota Farmers Union saw people who had previously been uninsured buy health insurance policies, he said.

With the subsidies set to expire unless Congress votes to extend them, Boyer said federal lawmakers haven’t focused enough on the self-employed farmers who will find it difficult to pay for increased health insurance premiums.

“The bulk of the people that are going to be impacted are hard-working folks,” Boyer said during a breakout session at the organization’s annual convention in Bismarck on Friday.

For example, Boyer cited a married couple in their 30s who earn between $50,000 and $60,000 a year and have a daughter. They expect to see health insurance premiums increase $300 per month next year.

“On $50,000 to $60,000 a year, where do you find $4,000 a year in your budget?” Boyer said. “What are you going to go without?”

In another example, he said a member family of four earning about $150,000 per year pays about $900 for health insurance per month this year. The family expects to see the premium increase to $2,900 per month.

“People are going to walk away from their health insurance,” Boyer said. “I’ve never seen a time in this business like I am seeing today.”

Nationally, 27% of farmers, ranchers and agricultural managers are insured by individual marketplace insurance policies, with the large majority purchased through the Affordable Care Act marketplace, according to health policy outlet KFF.

The North Dakota Farm Bureau has seen an increase in people interested in its health plans as an alternative to the Affordable Care Act marketplace insurance, said Megan Hanson, director of member relations and state health plans manager.

Those plans, offered through a 10-state Farm Bureau group compact, can offer higher deductibles, differing out-of-pocket expenses and lower premiums than typical insurance plans, Hanson said. The plans do not cover people with preexisting conditions, such as cancer or diabetes, and can require people to submit medical records when they apply for coverage, she said.

John Arnold, deputy commissioner for the North Dakota Insurance and Securities Department, advises people to consider the big picture when evaluating different insurance or health coverage plans.

“The monthly premium may be significantly lower, but over the course of the year, am I going to be paying more out-of-pocket, one way or the other?” Arnold said. “Definitely encourage consumers to look beyond the initial sticker price, do all their calculations and figure out what plan is best for them.”

Arnold said the best thing people shopping for health coverage can do is to talk to their local insurance agents to become more informed about their options. He said the agents should be able to explain the policies and options clearly so people don’t fall victim to plans they don’t fully understand.

“There is no alternative to sitting across the desk, face-to-face, talking to somebody who knows the industry inside and out,” he said.

Open enrollment for Affordable Care Act marketplace health insurance plans runs through Jan. 15.

North Dakota Monitor reporter Michael Achterling can be reached at machterling@northdakotamonitor.com.