Study Finds Co-op Health Insurance Working for Farmers

Better Benefits, Better Price for Farmers' Health Cooperative Members

A recent survey of Farmers' Health Cooperative of Wisconsin (FHCW) members reveals that the health insurance purchasing cooperative has had a positive impact on both the cost and quality of health insurance coverage offered to farmers and agribusinesses.

The survey, conducted by the non-profit Shawano County Rural Health Initiative of 839 FHCW members, found that over two-thirds of members reported improved benefits available to them through FHCW compared to the insurance plan they had previously.  At the same time, 51.3 percent reported that their health insurance premiums were reduced under FHCW, while another 30.4 percent reported no change in premium. 

Access to preventive health services improved for FHCW members as well, which was one of FHCW's main goals.  Nearly 26 percent of respondents reported their prior coverage excluded coverage for preventive care, while another 37.5 percent said this coverage applied to their deductible.  FHCW provides generous preventive care benefits, with first dollar coverage for many services.

FHCW was organized in 2007 to increase the value of health insurance available to farmers and agribusinesses through a collaborative effort led by the Wisconsin Federation of Cooperatives.  U.S. Senator Herb Kohl, Congressman Dave Obey, the Wisconsin Partnership Program, the Wisconsin Department of Agriculture, Trade and Consumer Protection and several Wisconsin cooperatives were involved in the effort.  Today, the cooperative serves nearly 2,500 members statewide.

FHCW partnered with the Rural Health Initiative of Shawano County to conduct "Health Risk Assessments" of members in an effort to help them understand their own heath risks.  The Rural Health Initiative was started by ThedaCare in 2003 to improve the health of farmers in the Shawano area, and has since been involved in a number of state and national initiatives to improve rural health care and farm safety. The results of the assessments are not revealed to FHCW's insurance company and have only been reported to FHCW in aggregate to protect the identity of members.

Questions about the cost and quality of members' prior health insurance were included in the survey to help track the ongoing impact of FHCW.  The questions were developed with the assistance of researchers from the University of Wisconsin Population Health Institute. 

Rhonda Strebel, Executive Director of the Rural Health Initiative, said she is pleased that the results have been so favorable.  "As a rural health advocate, it's my job to help put people in touch with services and resources that can meet their needs," Strebel said.  "Until the Farmers' Health Cooperative was launched, accessible, quality health insurance was not always easy for farmers to find."

Strebel, who has been performing health risk assessments on farmer volunteers in Shawano County for five years, said FHCW health data tracks with data from her county.  "There is very good news for FHCW coming out of this," Strebel said.  "We find that farmers smoke less than the average population, use alcohol less than the average population, and are generally more active at work than the general population.  These are significant factors in preventing chronic illness, and chronic illness drives the majority of health costs, so this bodes well for FHCW's future."

Melissa Duffy, FHCW's Executive Director, said she was not surprised to find that the co-op was offering better benefits, but was surprised that the co-op was already saving members money.  "We knew going in there were a lot of underinsured farmers in Wisconsin without quality health benefits, but we thought the real impact on price would come further down the road," Duffy said.  "We're still young, and with each member we add we increase our negotiating power.  I'm very excited about the future."

Farmers and agribusinesses can find out more about FHCW by calling 1-800-539-9370 or by visiting www.farmershealthcooperative.com.  FHCW offers six plans with deductibles ranging from $300 to $5,000, a comprehensive, statewide provider network and coverage for work-related injuries.  The cooperative will be adding dental care as a benefit available to members in 2009.