Senate committee advances bill allowing farm membership groups to offer member health coverage

An unidentified senator presenting Senate Bill 23 24 told the Senate Insurance & Commerce Committee the bill would add a "non profit agricultural membership organization" as an exception under the Arkansas insurance code and formally define the term in state law. The presenter said the organization must be incorporated in Arkansas, have a physical presence in every county, promote the interests of farmers or their affiliates, and provide coverage for members and families pursuant to contracts between members or affiliates.

The sponsor said similar organizations operate in other states and that "Tennessee has 75 years worth of experience with this type of organization," framing the proposal as a way to let farming groups negotiate and offer lower-cost options that could reduce the need for spouses to take outside work solely to obtain health insurance. "I just wanna say that, I am a young farmer in the state... I need my wife on the farm helping me work full time," testified Brandon Martin, who told the committee the change could help young farm families access affordable coverage and keep family labor on the farm.

Committee members pressed the presenter on regulatory and market implications. One senator asked whether individual providers would be required to participate; the presenter replied they would not be mandated to join the plan and that providers would choose whether to accept the plan's rates. Another member asked how eligibility would be determined; the presenter said organizations would need to meet four statutory criteria and that currently only a small number of organizations are likely to satisfy all four.

The committee moved to "pass as amended," with the motion seconded by Senator Boyd. The committee recorded an affirmative voice vote and advanced the bill.

The bill, as described to the committee, defines the organizational criteria and leaves participation by health-care providers voluntary. Supporters argued the change would create an affordable, farm‑focused option for coinsurance/deductible coverage for members; questions from the committee focused on market access for providers and which organizations would qualify under the statutory definition.

The committee did not receive opposition testimony at this hearing. The next procedural steps are statutory: the bill was advanced by the committee and will proceed according to the Senate's calendar.