HURON, S.D. – The government shutdown has many concerned about food benefits, pay and services from the federal government. For farmers and ranchers though, the implications to their government-sponsored health insurance are another worry.
Deadlock in Washington over funding the next fiscal year has consequences for every part of America. For those reliant on the Affordable Care Act, or Obamacare, there is fear their coverage may be part of that battle.
The ACA is very popular among farm and ranch owners, as many are self-employed, and the program offers benefits that are often better than private options.
Fall is not just harvest season. It is also open enrollment season to purchase or update health insurance plans on the marketplace. Based on a survey of over 1,100 farm and ranch families in 10 states across the country, 40% had purchased a plan on the health insurance marketplace, and 50% had received a tax credit or subsidy to help offset the cost.
Lance Boyer is the director of financial products with the state Farmers Union. He said there’s no question a shutdown is going to hit farm and ranch country hard.
“Prices are high, they’re not selling any soybeans, input costs are up, I think it’s a tough time for some of those folks right now,” Boyer said. “That’s where the piece on the insurance side will add a big burden to those folks financially.”
He estimated that some farmers and ranchers paying a few hundred dollars will see their premiums jump to over $1,200 per month.
“Seven out of 10 of our self-employed farmers and ranchers receive some kind of a tax credit on their health insurance,” Boyer said. “If they don’t extend these tax credits that are going to sunset at the end of 2025, that seven out of 10 are going to be impacted substantially on their monthly premium.”
Boyer adds there is another victim in this battle though – rural hospital networks.
“What we’ve been able to do by getting these extra, enhanced tax credits is we’ve added people where they have coverage,” Boyer said. “These rural hospitals aren’t having to write off people who show up without health insurance. They’ve got it. If now, because we lose the funding on those tax credits if they drop their health insurance they’re still going to go to the hospital if they’re sick or injured. Now we’re back to the old days where the hospitals have to carry a lot of those bills.”
The shutdown went into effect at midnight, and it is unclear when Congress will reach an agreement to fund the government for the next year.