When it comes to premiums, the statefarm, one of the country’s largest agricultural insurance companies, has a reputation for pricing higher than the federal government.
That may change this year, though.
Statefarm says it is negotiating a deal with the federal health and human services secretary, Tom Price, that could allow states to offer greater discounts to insurers.
The deal could be announced in the next couple of weeks, statefarm spokesman Dave Hennig said, adding that a state farm executive would not be making the decision.
Price will be the federal department’s acting administrator for health care and public health, according to the department’s website.
State Farm also said it was negotiating with a major health insurance provider to offer discounts to farmers who have health insurance through the federal Farm Bill program.
Hennigsons statement said the state was negotiating a better deal than the one the federal agency has with major health insurers.
“We are very interested in finding a fair deal that is appropriate for the state,” Hennigan said.
StateFarm has long been a proponent of lower rates for farmers.
In 2013, it agreed to raise premiums for some farmers by as much as 50% from their current level to $100 a year.
It also offered to offer a $50,000 federal credit toward premiums for certain farmers.
State Farm’s contract with the USDA covers the cost of the credit.
Hennig also said state farms have been negotiating better insurance rates than the private insurers.
Hensley said state farmers are also negotiating better rates than they have in the past.
“We have had the largest premium increases in the industry in the last decade, which is why we’re in negotiations with the government,” Hensley told reporters.
Horsley also said he was not aware of any state farms raising prices this year.
But he said there are no plans to raise prices at any farm.