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Monday, August 28, 2006

New report on Kansas farmers' medical debt 

[William Lottero, Robert Seifert and Nancy Kohn, "Losing Ground: Eroding Health Insurance Coverage Leaves Kansas Farmers with Medical Debt," The Access Project, July 2006.]

A recently-released report from The United Methodist Health Ministry Fund and The Kansas Farmers Union reveals that many farmers in Kansas face significant medical debt even if covered by traditional insurance:

Overall, about one respondent in six (17%) reported having medical debt. However, this statistic conceals a significant difference between the experience of respondents age 65 and over and those under 65: Only five percent of those 65 and over reported medical debt, while nearly a third (29%) of the non-elderly respondents said they had debt. These findings combine to raise the question of whether the health insurance covering many of the younger families in farming adequately protects them from financial risk.

Such findings suggest that farming families in Kansas might be better served by consumer-driven health care products like health savings accounts, with high-deductible coverage that has clearly defined maximum out-of-pocket costs. Too often, the fine print of traditional coverage includes co-insurance that can lead to incredibly high liability.

Fortunately, there are signs that HSAs may become more popular among farmers. Earlier this year Cargill announced a program whereby the company offers to set up and contribute to HSAs for farmers willing to guarantee a portion of their grain will go to the company:

"The program, which company officials say is the first in the nation, is aimed at helping farmers who are struggling with rising health insurance costs while guaranteeing business for Cargill in an increasingly competitive grain market."

[Devon Herrick, "Health Savings Accounts: The Future of Health Care for Kansans," The Flint Hills Center, 14 February 2005.]

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