Media & Entertainment Law

Baby You Can Drive My Car: Hollywood Health Plans May Have to Pay ?Cadillac Plan? Tax

By Jonathan Handel, Esq.

Hollywood unions have long bargained for great health benefits, often foregoing a portion of wage increases in order to fund those benefits (as well as valuable pension benefits). Those health benefits, which are available to middle-class members as well as wealthy stars, would be the envy of most of the country if people elsewhere knew of them: the DGA?s top-tier plan reportedly features 10% in-network co-pays and a deductible of $325 per person in a world where 30% copays and $1,000 deductibles are more common.

However, the Senate version of health care reform would tax a portion of the cost of such high-end plans, resulting in costs that would probably be passed on to members in the form of higher premiums and/or benefit cuts. The President met with union leaders Monday and indicated he may compromise on the issue. Like everything in health care reform, it?s all up in the air until something passes ? or if something passes ? in this health-insurance benighted nation. For more, see the piece on yesterday?s NY Times Media Decoder blog.

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Full post as published by Digital Media Law on January 13, 2010 (boomark / email).