2/24/22 Update on the Class Action suits:
The Asner et al lawsuit is proceeding; we are in discovery.
The Fisher class action was amended per the judge's request and you can read Fisher 2.0 here.
OUR MEMBERS WERE SHOCKED ON 8/12/2020 WHEN THE TRUSTEES MADE CHANGES TO OUR SAG-AFTRA HEALTH PLAN.
DURING A PANDEMIC, A WORK SHUTDOWN & ECONOMIC CRISIS.
WHO LOSES THEIR SAG-AFTRA HEALTH CARE
36% of the current 32,600 Health Plan participants
2,900 Plan 2 Participants
650 Age & Service Participants
8,200 Senior Performers
11,750 Total Participants will lose their SAG-AFTRA Health Care
This may not affect you personally, yet it affects your coworkers.
These draconian changes affect all performers: day players, stunts, singers, stand-ins, background actors, dancers, recording artists, voice-over artists, broadcasters, and most importantly, the seniors who built our Union.
LET’S TALK RESIDUALS
For SAG-AFTRA Members over 65 taking their pensions, residuals no longer will count as earnings.
BUT!
These same members will have contributions made into the Plan on those earnings. These same members will continue to pay dues and taxes on them.
It is wholly unacceptable that only members who are 65+ and taking their pensions, will not have residuals count towards their earnings - but are counted as contributions to bolster the Health Plan for others.
Not applying those residual contributions to senior pensioners is tantamount to stealing.
8,200 SENIOR PERFORMERS (OVER 65) NOW WILL LOSE THEIR PROMISED SAG-AFTRA HEALTH PLAN COVERAGE.
These Participants with 20 or more vested years were promised that at 65 they would have high-quality, supplemental (secondary) insurance for the rest of their lives with no earnings requirement.
In addition to purchasing a medical supplement in the market place, they are going to have to purchase as many as three additional plans to cover the dental, prescription, and vision coverage that the SAG-AFTRA Plan includes.
Our Seniors’ earnings contributions were paid into the Plan from the beginning of their careers, in addition to paying a quarterly premium.
Consider this:
• A commercial performer would have to work 37 commercial days at the current $712/day rate to qualify.
• Imagine a 65-year-old woman having to go out to find a job to earn the new qualifying minimum of $25,950 in session fees, because her residuals no longer count as earnings.
• How many jobs are available for the 75-year-old stunt performer or dancer?
• A background actor has to work 100 days to qualify for Health Care.
SOMETHING IS ROTTEN HERE
The Health Plan Trustees knew for at least 2 years that the Plan was in trouble.
When the Plan started losing money, rather than making incremental adjustments to better prepare the Participants, instead, on August 12, 2020, the Trustees shocked members with draconian cuts, increased qualifiers, and increased premiums.
During an Industry shutdown, members now have little opportunity to find work to earn the $25,950 or 100 days to qualify. Just prior to the changes to the Plan, members called in to be sure they were covered for next year. They were told yes, only to find out later they were not.
THERE WAS A SOLUTION, BUT…
THE NEGOTIATING COMMITTEES WERE NEVER NOTIFIED
Our three largest Contracts have been negotiated over the past 2 years:
COMMERCIALS
NETFLIX
TV/THEATRICAL
Never once within these 2 years did the staff or member Trustees of the SAG-AFTRA Health Plan notify the negotiating committees regarding the extent of the Plan’s peril.
Every single contract could have directed more money into the health plan.
What’s most egregious is that 4 of the 20 Union Health Plan Trustees and most of the 20 Management Health Plan Trustees were also negotiators of the most recent TV/Theatrical contract. It’s not just that the Trustees knew, they were actually part of the process.
Other members of the negotiating committees are on record saying they would have approached these negotiations differently had they known this information.
“An increase of up to $54 million in additional funding for the SAG-AFTRA Health Plan” was a great achievement, we were told.
NOW EVERYONE KNOWS THAT WASN’T ENOUGH
3,550 MEMBERS UNDER 65 WILL LOSE THEIR
SAG-AFTRA HEALTH CARE
The Union’s Health Plan was always set up to cover as many working performers as possible. Acknowledging the ups & downs, the good years & the lean years, there were four ways of qualifying for Health Care:
Plan 1: Earnings threshold ~ $35,020
Plan 2: Earnings threshold ~ $18,040
Plan 2: 84 days of work (no matter your earnings)
Plan 2: Age & Service (Over age 40/10 years vested/earning $13,000)
Now both Plans will be combined, and there will be ONE Health Plan.
There are now only two ways to qualify for Health Care:
Earn $25,950 - an increase of $7,910 for former Plan 2 Participants
Work 100 days - an increase of 16 days
QUARTERLY PREMIUMS FOR THE NEW HEALTH PLAN
WILL INCREASE BY 5% TO 99%
Current Plan 1 $300 / $348 / $375 Increases to $375 / $531 / $747
Premiums will increase:
25% for 1 individual
52% for 1 individual + 1 dependent
99% for 1 individual + 2 or more dependents
Current Plan 2 $357 / $408 / $447 Increases to $375 / $531 / $747
Premiums will increase:
5% for 1 individual,
30% for 1 individual + 1 dependent
67% for 1 individual + 2 or more dependent
WORKING SPOUSES WITH EMPLOYER HEALTH COVERAGE
MUST ENROLL IN THEIR OWN EMPLOYER’S COVERAGE
THE UNION’S INFORMATIONAL WEBINARS
If one attended any of these webinars, one could clearly see that the Trustees & the CEO of the Health Plan wished to avoid direct interaction with the Members. All one could do was type a question into the Chat and hope to have it answered. A few select questions were entertained, before members were referred to the FAQ page at www.sagaftraplans.org.
But there was no way for a member to challenge those who sidestepped answers to their questions by actually having a dialogue.
THE BOTTOM LINE
The SAG-AFTRA Health Plan is funded by our work.
We, the Members, in order to fund this Plan have sacrificed:
Wage increases
Residual increases
Working conditions
We must hold those in charge accountable.
They are called “Trustees” for a reason. We put our TRUST in them.
They have broken that Trust.
From the glossy smiling faces on the Plan Summary, saying “We’re All in This Together!”
To the corporate webinar presentations...
To the Union itself running and hiding under the pretense of:
“It’s not us; it’s the Health Plan!”
It is now up to us. The Members. To fix what has been broken.
SOS HEALTH PLAN 9-23-2020 UPDATE
We want to be sure you know that you have an option when it comes to shopping for your secondary insurance that was just taken away from you.
FINALLY - - The SAG-AFTRA Health Plan Trustees have approved, as an alternative to Via Benefits, allowing Senior Performers who qualify for the HRA (Health Reimbursement Account) to enroll in a Medicare Supplement Plan through the Entertainment Health Insurance Solutions (EHIS) and the Actors Health Insurance Resource Center (AHIRC), which are both offered through the Actors Fund and the Motion Picture and Television Fund (MPTF).
For California Residents, you can contact EHIS at EHISCA.com
For those outside of California, you can contact AHIRC at https://actorsfund.org/services-and-programs/artists-health-insurance-resource-center
This alternative allows any commissions paid by the insurance companies to benefit the MPTF and the Actors Fund, whereas commissions paid for insurance found through Via Benefits fill Via Benefits’ coffers.
Meanwhile... We are still doing everything we can to mitigate the changes made to the Plan.
CONCERNED SAG-AFTRA MEMBERS FILE CLASS ACTION AGAINST:
THE TRUSTEES OF THE SCREEN ACTORS GUILD-PRODUCERS HEALTH PLAN AND
THE TRUSTEES OF THE SAG-AFTRA HEALTH FUND
Los Angeles, CA… December 1, 2020… Members of the Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA), today filed a class action lawsuit against their Health Plan Trustees for compromising and eliminating medical coverage for Plan Participants and their families. SAG-AFTRA is an American labor union representing approximately 160,000 film and television actors, stand-ins, journalists, radio personalities, recording artists, singers, voice actors, dancers, stunt-performers, background-performers, and other media professionals worldwide.
SAG-AFTRA Members were shocked to learn on August 12, 2020 that their Health Plan Trustees announced drastic and discriminatory cuts to the SAG-AFTRA Health Plan that eliminated promised health coverage for thousands of senior SAG-AFTRA members. The Trustees announced these cuts during a pandemic, an Industry shutdown, and an economic crisis with full knowledge that Members - particularly senior members - would have little opportunity to find the session work necessary to meet the new arbitrary and discriminatory standards for continued coverage. After months of research, SAG-AFTRA Members and their legal team determined that filing the lawsuit was a necessary step toward restoring medical coverage to Plan Participants.
The Trustees announced these draconian cuts even though they assured Plan Members that their medical benefits would remain in place. Indeed, in connection with the merger of the SAG and AFTRA health plans in 2017, the Trustees promised members that the combined plan would be “financially sustainable for all members for years to come” and would “strengthen the overall financial health of the plan while ensuring comprehensive benefits for all participants.”
The Health Plan Trustees knew for at least two years that the Plan was in trouble. When the Plan started losing money, rather than making incremental adjustments to better prepare the Participants and negotiate more contributions into the Health Plan, the Trustees shocked members with cuts, increased qualifiers, increased premiums and discriminatory actions.
Never once within these two years did the staff or member Trustees of the SAG-AFTRA Health Plan notify the negotiating committees or the SAG-AFTRA National Board regarding the extent of the Plan’s peril.
1. There were three major contracts negotiated in the last two years valued at billions of dollars annually (2019 Commercials, 2019 Netflix, and the 2020 TV/Theatrical contracts) that could have directed more money into the Health Plan.
2. Most egregious of all, some of the 20 Union Health Plan Trustees and many of the 20 Management Health Plan Trustees were also negotiators on the most recent TV/Theatrical and Commercials contracts. It’s not just that the Trustees knew, they were actually part of the process.
3. Other members of the negotiating committees are on record saying they would have approached these negotiations differently had they known this information.
4. An increase of up to $54 million in additional funding for the SAG-AFTRA Health Plan was “a great achievement,” members were told, however, they were never told that the $54 million was nowhere near enough to sustain the Health Plan.
A copy of the complaint can be viewed here.
A video with messages from rank and file to prominent SAG-AFTRA members can be viewed at https://twitter.com/Eleven_Films/status/1333849149163204610
An article about the lawsuit by the Pulitzer Prize-winning Senior Financial Reporter; NBC News Investigations Gretchen Morgenson can be accessed here.
“For SAG-AFTRA Members over 65 taking their pensions, residuals will no longer count as earnings. These same members will have contributions made into the Plan on those earnings. These same members will continue to pay dues and taxes on them. It is unacceptable that only members who are 65+ and taking their pensions, will not have residuals count towards their earnings. Not applying those residual contributions to senior pensioners is tantamount to stealing,” said David Jolliffe, SAG-AFTRA National Board Member, 2nd VP Los Angeles.
“Our seniors built our Union, and we stand on their shoulders. All performers prior to 1960 gave away their movie residuals in television in order to start SAG’s Health and Pension Plan, at great personal sacrifice. It is unacceptable that now these senior performers will take a double hit and will lose their senior SAG-AFTRA Health coverage,” said Frances Fisher, SAG-AFTRA National Board Member, 1st VP Los Angeles.
The Health Plan is funded by SAG-AFTRA Members’ work. The Members, in order to fund this Plan, have sacrificed:
· Wage increases
· Residual increases
· Working conditions
PRESS: IF YOU NEED TO EMBED THE YOUTUBE LINK OF THE VIDEO, PLEASE CLICK HERE
SAG-AFTRA Members must hold those in charge accountable. They are called, “Trustees” for a reason. Members put their trust in them. They have broken that trust. It is now up to the Members to fix what has been broken.
For additional information, please visit soshealthplan.com
In the middle of the biggest public health emergency in a century -- 11,750 Union Members will be dropped from their earned and senior plan coverage.
We urge the Trustees to immediately reverse these changes, which are set to go into effect January 1.
The SOS Health Plan Team Responds to
SAG-AFTRA's 12/4/20 Email
Dear Member Participant,
SAG-AFTRA has stated many times that they are a separate and distinct entity from the Health Plan. Yet...
You’ve recently received an email from the Union’s official SAG-AFTRA COMMUNICATIONS’ account, deliberately misrepresenting the Health Plan Crisis.
It began, “There’s no easy way to say this: You are being misled.”
They insist that the truth is paramount. We agree.
Let us guide you through the five misleading points put forth.
1. The Union Says: Without significant changes, the SAG-AFTRA Health Plan’s reserves would have vanished for ALL participants by 2024. Ask yourself this: Why would the Health Plan want to reduce coverage for members if there was any other option?
We ask the same question. There were options:
Direct more money into the Health Plan through recent Contract Negotiations. (2019 Commercials, 2019 Netflix and 2020 TV/Theatrical)
Change the premium structure.
Add a new option with a higher earnings threshold.
Use our reserves for their intended purpose: To mitigate the consequences of an emergency, in this case, the Pandemic.
2. The Union says: Senior Performers are not losing their healthcare coverage; they will continue to have Medicare as their primary insurance, as they do today.
Seniors absolutely will be losing their SAG-AFTRA Healthcare coverage:
There was a decades-old legacy SAG benefit and SAG-AFTRA benefit upon which seniors based their retirement, which assured life-long secondary health coverage for participants and their spouses over 65 with 20 or more pension credits. That benefit has now been eliminated completely.
Despite being provided with a Health Reimbursement Account Stipend, members over 65 with Medicare as their primary insurance will be forced to choose a secondary plan from the marketplace that may not be comparable in coverage or price to the SAG-AFTRA coverage.
In addition: Senior performers over 65 taking their pension will now be in grave danger of losing their SAG-AFTRA primary Health coverage because their residuals will no longer count as credited earnings. Senior performers will now only be able to use their sessional earnings to qualify. That current qualifying threshold is $25,950.
3. The Union says: Spouses aren’t getting “kicked off” the plan.
Spouses are getting “kicked off” the plan.
If a spouse's employer offers health insurance, that spouse must take that plan as primary, even if it’s more expensive and has inferior benefits.
Spouses of living participants over 65 with 20 or more pension credits will be losing their SAG-AFTRA secondary insurance, along with the actual participant.
Members with 20 or more pension credits were promised their widowed spouses would have lifetime SAG-AFTRA secondary health coverage at 65, until remarriage or demise. That promise has been broken.
Spouses over 65 also are losing their SAG-AFTRA primary coverage when their participant spouse loses coverage because residuals are no longer credited.
4. The Union says: There’s a new reduced cost COBRA safety net available specifically designed to help ease the transition for many participants.
The referenced reduced COBRA rates are still more expensive than the new ACTIVE or Plan 2 rates.
The reduced cost COVID Relief COBRA coverage costs between 54% (for an individual) and 213% (for a family with 2 or more dependents) more than the previous Plan II coverage.*
The new Extended Benefits Cobra coverage for members with at least 12 extended career credits and $20,000 in covered earnings costs between 47% (for an individual) and 79% (for a family with 2 or more dependents) more than the new Active Plan (replacement for Plan I).*
*These percentages are based on the 2020 COBRA and Plan 2 rates and the 2021 COVID COBRA Relief and Active Plan rates.
5. The Union says: The idea that premium increases or higher employer contributions alone could have fixed the Health Plan is simply wrong.
Of course, premium increases and higher employer contributions alone wouldn’t have completely fixed the problem. Adding premium increases and higher employer contributions would absolutely have bolstered the plan, and, along with proper use of the reserves, could have saved thousands of member participants’ coverage.
In their email, SAG-AFTRA conflates sound observations with utterly misleading assertions.
They say: The root of the problem is the exorbitant cost of healthcare, a problem made worse by our industry's shutdown due to the pandemic.
We agree that healthcare costs and the industry shutdown are massive problems. But, the root of this plan’s problems is poor management.
They say: The cost of healthcare remains a top issue for Americans, and the SAG-AFTRA Health Plan is not immune from this and other economic forces.
We agree.
They say: Structural changes were required to put the Plan on a secure footing now and into the future.
We certainly agree that structural changes are required.
They say: We understand that change, myths and rumors have led to anger and frustration.
What has led to “anger and frustration” are the draconian changes that harmed thousands of Participants. In 2017 SAG and AFTRA Health Plan Participants were assured the new SAG-AFTRA Health Plan would ”be financially sustainable for all members for years to come” and merging the Plans would “strengthen the overall financial health of the Plan while ensuring comprehensive benefits for ALL Participants.”
They say: We understand that change is not easy, but it's crucial that you have the facts. As we have learned in our country and on social media, not all claims are factual. Always check the credibility of your sources.
We agree.
The SOS Health Plan Team
SOSHealthPlan.com
