Farmers Face Important Decisions Related to the Affordable Care Act
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While the Affordable Care Act (ACA) has been the subject of countless headlines recently, many people may not realize how farmers, as business owners, are affected by the law. It may surprise our suburban readers to learn that about 600 farms still operate in Johnson County, resulting in just under half (about 45%) of the county’s total land being in agricultural use.
According to Roberta Riportella, the Kansas Health Foundation’s professor of Community Health at Kansas State University, “Farmers are more likely to be insured than the rest of the U.S. population.” Riportella continues, “This is not surprising given that farm work is hazardous with many potential occupational injuries. Purchasing health insurance and disability insurance is viewed by many farmers as essential elements in protecting their family farms.”
Another aspect of health insurance is offered by Barbara O’Neill, an Extension specialist in financial resource management at Rutgers University. She states, “Because premiums for individual health insurance are rated based on the individual’s own risks, they have been exceptionally high for farmers.” Provisions of the Affordable Care Act make it more likely that “farm families will be able to purchase less expensive coverage,” O’Neill added.
In any event, the Affordable Care Act requires all Americans to have health insurance, so farmers will have to make insurance decisions for their families and their business.
O’Neill reminds us that, “tax credits are available to help the smallest employers (less than 25 employees) pay for the cost of employee health insurance.”
O’Neill added that an ACA mandate for large farms (more than 50 employees) to provide health care coverage is currently delayed. So fines, which could be as much as $3,000 for every employee, will not become effective until January 2015.
K-State’s Riportella shared three tips to help farm families make decisions about insurance coverage for themselves and their employees:
Compare the cost and features of your current insurance with those in the new ACA insurance ‘marketplace.’ State-based navigators and insurance agents can assist farmers in making decisions on health insurance. “If you are considering insurance for your farm business, consult an insurance broker, employment law attorney, certified financial planner or others you trust,” she said.
Consult with a professional farm advisor to develop an action plan for the business.
Allow enough time to shop around and select health insurance coverage that is both affordable and adequate, thereby meeting requirements outlined in the Affordable Care Act.
Additional information to help Johnson County farmers make health insurance decisions is available on the federal government’s official website, www.healthcare.gov.
Riportella also writes a blog to provide information regarding emerging topics on health reform: https://blogs.ksre.ksu.edu/issuesinhealthreform/
