INSURANCE: Farm Bureau offers little-known health benefit

4,000 have joined Farm Bureau to get health insurance

By JULIE PENDRAY - For the North County Times | Thursday, September 4, 2008 8:15 PM PDT ∞

As more employers cut benefits even for full-time workers, the quest for health insurance can become consuming.

Federal figures indicate one in four American workers lacks health insurance, but some are finding access to affordable health insurance in an unusual place ---- the San Diego County Farm Bureau, an advocacy group for farmers and ranchers.

Other advocacy groups, such as the AARP, offer supplementary health care programs, but the Farm Bureau program is a primary care plan offered through Health Net.

About 4,000 people in San Diego County have joined the bureau for the health care benefit, even though they do not work in the farming industry, said executive director Eric Larson. The total number of bureau members is 5,000.

Farm bureaus developed in America in the early 20th century and became powerful lobbying forces and educational institutions. Through these bureaus, agricultural workers also can reap benefits such as discounted health care, auto and homeowners insurance and amusement park admissions.

"The farm bureau is the oldest association plan in California," said Sam Cole, regional vice president of individual and family plans for Health Net. "Back in the 1940s, it was hard for farmers to get any kind of insurance because farming was risky business. So, they created their own association to get it."

The bureau insurance program began in 1946, with assistance from then-Gov. Earl Warren, who tried to develop a state-level health care plan at the same time President Truman was promoting the idea of a national health care system. Both were unsuccessful.

Most of the referrals to the farm bureau insurance plan comes from independent insurance agents. The state farm bureau negotates the rates with the health care carrier.

"It doesn't mean that they're guaranteed the insurance just because they've joined," said the bureau's Larson. "It's not group coverage. Some people may not qualify because of pre-existing conditions."

Larson said a broad cross section of people have joined the county farm bureau. He says he has heard parents say that the insurance is helping their college students, for example. The added membership also makes the organization financially stronger, Larson said. It also gives the bureau an opportunity to educate people about agriculture through its magazine, which is sent to all members, he said.

Marie Skelton of Escondido said she and her husband acquired health insurance through a farm bureau in Idaho when they owned a gasoline station in the 1950s.

Membership ranges from $80 to $395 a year, depending on whether a person is a voting member. Members are eligible to apply for health insurance at the $80 level.

Health Net offers bureau members several discounted plans with various deductibles. A monthly premium on a deductible plan for a single man in his early 50s, for example, would range from about $180 to nearly $300, depending on the deductible. That compares with a range of about $295 to $340 per month through Kaiser Permanente.

Farm bureau members also may enroll in dental and vision insurance plans through Health Net.

Cole said the bureau's access to a health plan is unique among advocacy groups and rates are competitive with individual plans such as those offered by Anthem Blue Cross, Blue Shield and Kaiser Permanente.

Lynne Randolph, a spokeswoman for the state Department of Managed Healthcare, said insurance is so complex that it would be difficult to compare the benefits of the farm bureau's insurance with that offered by other groups or companies.

However, in general, she said, associations are able to offer competitive cheaper rates, compared with most individual plans.

"The cost is spread over a broader base, so they are banking on fewer claims," Randolph said.

Regardless of how health insurance is obtained, it does much more than provide medical care. A North County woman, who requested anonymity, said she did without health care for 30 years before finally becoming eligible for Medicare.

At last, she said, she has the peace of mind that comes with having health insurance. People who lack health insurance don't like to talk about it, she said.

"There's a sense of shame," she said.