Entertainment Industry COBRA Subsidy Bill Passes Senate and Assembly
Vital Issue Galvanized Entertainment Community

After two years of dedication and tireless efforts, the Entertainment Industry Health Insurance Coalition, coordinated by The Actors' Fund of America, announces that the Entertainment Industry COBRA Subsidy Bill was passed by both the Senate and the Assembly. The bill now awaits Governor George Pataki's signature to become law. The bill will provide state funds to assist entertainment industry union members in paying for health insurance continuation (COBRA).

Known as the New York State Insurance Continuation Assistance Program, the bill was sponsored in the Assembly by Richard Brodsky (D-Westchester) and in the Senate by Kemp Hannon (R-Nassau). It received crucial support from Assembly Speaker Sheldon Silver, who brought the bill to a successful vote in the Assembly last year, and Senate Majority Leader Joseph Bruno, who kept his door open to the bill's proponents, despite his initial reservations. Richard Gottfried's (D-Manhattan) early backing of the bill was also a key component in its eventual success.

The bill sets aside $3 million in funds for the payment of up to 50% of COBRA premiums for eligible individuals for a period of up to 12 months. Eligible individuals include entertainment industry professionals and displaced workers from plant closings whose annual wages are at or below 250% of the poverty level ($38,150 for a family of three). The funds will come from the $200 million HealthyNY program that currently offers affordable health insurance to uninsured employees of small businesses and self-employed workers.

A coalition of entertainment industry unions, guilds, social service agencies, producers and theatre owners, initiated by the four largest performers unions - Equity, SAG, AFTRA, and AF of M Local 802 - and coordinated by The Actors' Fund of America, has worked for passage of the bill. They were assisted by a benefits consultant, Barbara Caress of The Segal Company, and a legal consultant, Richard Winsten, who is a partner in the law firm of Meyer, Suozzi, English & Klein.

A sustained grassroots campaign involved the casts and crews of every current Broadway and off-Broadway show, trips to Albany by union members, and calls to legislators by countless members of the entertainment community including union heads, theatre owners and well-known performers such as Jerry Stiller and Bebe Neuwirth. Through these partners, the coalition was able to make a compelling case for health insurance continuation assistance for an industry that generates billions of dollars for the state economy yet sees more than 30% of its working members going without health insurance.

"The coalition met regularly to explore solutions to the problem of obtaining affordable, quality health insurance for entertainment professionals in New York State," explained Joseph Benincasa, The Actors' Fund's Executive Director. "Coalition members worked closely with New York State legislators to pass this bill to provide COBRA subsidies to entertainment professionals and to recognize the importance of the entertainment industry to New York State's economy."

"This achievement demonstrates the power of a well-organized grassroots movement," said Equity's Eastern Regional Director Carol Waaser. "It's going to make a huge difference to many New York Equity members, thanks to the concerted efforts of all the entertainment industry unions." Cynthia Vance, Chair of the SAG Legislative Committee and Third New York Vice-President, added, "SAG's health plan is facing tough challenges and the resulting changes have had a dire impact on many of us. This legislation comes just in time. SAG is proud to have been part of a solution to the problem." Ed Fry, Eastern Chair of AFTRA's Legislative and Public Affairs Committee and Vice President of New York Local commented, "This is badly needed help for members who have found it increasingly difficult to qualify for health insurance. AFTRA has been an enthusiastic partner from the beginning. The unity and cooperation of the unions and The Actors' Fund have won the day. Now, so will our members."

A COBRA subsidy will help members of the entertainment industry, because many will now be able to afford it, and their insurance will be continuous. According to Rocco Landesman of Jujamcyn Theaters, "The passage of this bill is a real accomplishment, because twice as many colleagues in the entertainment industry are without health insurance compared to other Americans." Due to the bill's passage, entertainment professionals will not lose their state and federal protection against pre-existing condition waiting periods because they have been forced to undergo a gap in their coverage. And they will be able to remain with the same health care providers, maintaining continuity of care, until they become eligible again for their union plan.

The passage of this bill was critical because in any 12-month period, 37% of those receiving health insurance from entertainment industry union health funds lose their eligibility. Although unions and employers offer individual continuation of health insurance coverage through COBRA (Consolidated Omnibus Budget Reconciliation Act), individual COBRA rates for these unions can be as much as $375 (average $264) a month. More than 70% of those who are offered COBRA do not enroll, many because they simply cannot afford it.

The Coalition galvanized the entertainment community to take immediate action to get New York State lawmakers to approve the COBRA subsidy bill. The bill can be delivered to the Governor's desk by the Senate any time before December 31, 2003. It has the support, at least in concept, from the Executive Chamber staff and the Superintendent of Insurance, Greg Serio. Actor Jerry Stiller said, "We still need Governor Pataki to approve, but having the Senate and Assembly pass this bill is a huge step in the right direction." The coalition has already begun to plan and execute a campaign to persuade the Governor to sign the bill into law.

The Entertainment Industry Health Insurance Coalition was formed in November 1999 as an advocacy group for health insurance legislation that would assist uninsured industry members. Its activities are coordinated by The Actors' Fund of America, the industry's oldest human services organization, and is sponsored by its founding members Actors' Equity Association, Screen Actors Guild, American Federation of Television and Radio Artists, and American Federation of Musicians Local 802, as well as by the Association of Theatrical Press Agents and Managers , American Guild of Musical Artists , American Guild of Variety Artists , IATSE Local One, NABET-CWA Local 16, Motion Picture Studio Mechanics IATSE Local 52, Society of Stage Directors and Choreographers , Writers Guild of America East, I.B.E.W.-AFL-CIO Local 1212, United Scenic Artists Local 829 and Directors Guild of America. The Coalition also includes non-union organizations such as Broadway Cares/Equity Fights AIDS, The League of American Theatres and Producers, The Recording Academy, Musicians Foundation, Inc., New York Production Alliance, Career Transition for Dancers, Harkness Center for Dance Injuries, Episcopal Actors Guild, Guild of Italian-American Actors, and Theatre Authority East.

CONTACTS: Sara Meehan/The Actors' Fund/(212) 221-7300
Andrea Kotuk/Andrea & Associates/(212) 353-9585