SAG-AFTRA Health Plan Raising Premiums & Eligibility To Stay Afloat

deadline.com
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Facing staggering deficits, the SAG-AFTRA Health Plan is raising premiums and earnings thresholds for coverage come January 1. "While this restructuring will preserve access to an excellent health plan for the majority of our participants, the changes will be disruptive for some," the Plan said today in a letter to participants, noting that those who […]
Facing staggering deficits, the SAG-AFTRA Health Plan is raising premiums and earnings thresholds for coverage come January 1. "While this restructuring will preserve access to an excellent health plan for the majority of our participants, the changes will be disruptive for some," the Plan said today in a letter to participants, noting that those who lose coverage because they don't meet the new earnings requirements may be eligible for coverage under Obama Care.

"Without restructuring the Health Plans, we are projecting a deficit of $141 million this year and $83 million in 2021, and by 2024 the Health Plan is projected to run out of reserves. We must prevent this from happening," the letter states. Last year, the Plan paid out nearly half-a-billion dollars to provide coverage for 65,000 participants and their families.

Under the restructuring, premiums will increase to $375 per quarter for coverage of one participant; to $531 per quarter for a participant with one dependent, and to $747 per quarter for a participant and two or more dependents. Under the new earnings thresholds, participants under the age of 65, for instance, will now have to earn at least $25,950 – including seasonal and residuals earnings – during a 12-month base earnings period to qualify. Alternately, they'll be able to qualify by working 100 days during a base earnings period under specified contracts.

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"It's no secret that over the past several months, we have been living through extraordinary physical, emotional, and financial pressures that have had a particularly heavy impact on our industry," the letter says. The SAG-AFTRA Health Plan has not been immune.

"Throughout our history, the Plan has provided high-quality health coverage to hundreds of thousands of participants and their families. However, the continued high cost of health care, the global pandemic, and the industry shutdown have created an urgent need for the SAG-AFTRA Health Plan to be…
David Robb
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