In July, the Local 802 Musicians’ Health Fund trustees received some very bad news. The fund was projected to be insolvent by 2027 if nothing was done to rein in costs. These projections were much worse than previous ones, mostly due to increased utilization.

Health care costs are very hard to predict. But the 600 or so people covered by Plan A represent a fairly small population which means a few serious medical events in that population can wreak havoc on the bottom line. This creates a lot of risk and volatility..

It looked like some extreme changes were going to have to be made to keep the fund solvent.

Thanks to the solidarity of Broadway musicians and the substantial increases in Broadway League contributions in the new contract, the outlook has improved. There will still be modifications but they will not be nearly as bad as feared.

Here are the basics. You also received a communication directly from the fund on Nov. 30 describing these changes in more detail:

• For the January 1, 2026 contribution period, the threshold to qualify for Plan A rises from $3,000 to $3,250. (We thought this would have to be a bigger increase.)
• Beginning in the January 1, 2026 contribution period for the September 1 coverage period the rollover bank is discontinued. (As the threshold increases, and people have to use more of their bank to qualify, the bank becomes less useful to everyone in any event. Also, this change was adopted to avoid an even bigger increase to the threshold).
• Beginning with the January 1, 2026 contribution period for the September 1 coverage period, LS-1 contracts will no longer be accepted. (We believe these have been a disproportionate drain on the fund, especially given the small number of participants who qualify based on LS-1 contributions.)
• Copays for in-network doctor visits will rise from $30 to $40 for a primary care provider and from $50 to $75 for a specialist beginning March 1, 2026. (Everyone who uses the coverage has to pay copays, so these increases are meant to reduce the burden by spreading it as widely as possible.)
• After the deductible there will be a 30 percent coinsurance (the percentage you pay on the amount billed) on hospital in-network diagnostic tests and imaging beginning March 1, 2026. Until now there has been no coinsurance on labs attached to hospitals, while there already was a 30 percent coinsurance for standalone facilities. (Going forward, using a stand-alone facility instead of a hospital for tests and imaging will be CHEAPER for participants, even though it carries the same 30 percent coinsurance obligation, because the overall cost is usually so much lower.)
• No change in deductibles (We had at first expected to have to increase them.)
• No change in participant premiums (We had expected to have to make increases here as well.)
• No change to Plan B.
• For the January 1, 2028 contribution period (for the September 1, 2028 coverage period) the eligibility threshold will rise to $3,500 (disappointing, but we thought this would be higher as well, and it gives the Union and members time to plan ahead).

These cuts will be difficult for musicians. However, they are not as bad as what we were facing before the Broadway contract was ratified. The Local 802 health trustees did the best they could to make sure no one group bore too much of the increased burden while shoring up the fund’s finances so it could continue to offer quality health coverage into the future. And with healthcare costs continuing to climb at a dizzying rate, we will need all bargaining units to push for additional contributions with each contract negotiation. This is unlikely to change without improvements on how health care is delivered and paid for on a national level.

See https://www.local802afm.org/healthcare/ for more information.

Sara Cutler and Martha Hyde both serve as trustees on the Local 802 health fund.