Local 802 health fund faces challenges

Volume 122, No. 9October, 2022

The union trustees of the Local 802 Musicians Health Fund (Tino Gagliardi, Harvey Mars, Martha Hyde, Sara Cutler and Morris Kainuma) feel it’s time for a reminder of how our fund works and the challenges it faces.

We are a self-insured plan that pays medical claims directly instead of a premium to an insurer. This helps us contain costs and allows us to provide the coverage we believe our members deserve.

Participants qualify for coverage by earning contributions from covered work in the amount of $4,300 per year. In addition, qualifiers must pay participant premiums in the amount of $1,200 per year for single coverage and $4,800 per year for family coverage. But the actual coverage we provide is valued at approximately $15,000 for single coverage and $25,000 for family coverage. At the best of times, the disparity in these numbers leads the fund to teeter over and under the break-even point in a cyclical dance.

During the pandemic. when our industry shut down, most employer contributions stopped while the fund continued to meet its obligations and pay claims. It should come as no surprise that this put further pressure on the fund.

As our industry slowly reopens and recovers, it has taken some time for the data to accurately reflect current trends. We expect to have a full picture soon and we will update you on the state of the fund and what we plan to do to sustain it as soon as we are able.