An Introduction to the Entertainment Industry Flex Plan [International Musician]

After examining dozens of health insurance plans, RMA's Los Angeles Chapter, in conjunction with the AFM and Local 47, selected the Entertainment Industry Flex Plan as the best choice for the upcoming transition away from the Motion Picture Industry Health Plan for affected film and TV musicians. In this difficult health care environment, our focus was on finding a health care plan design that would increase musician participation at an affordable price and that could provide first quality health care. We believe we have found that plan, and want to share some of the details with colleagues around the AFM.

The Flex Plan is the most innovative and creative health and welfare benefit plan we have encountered in the entertainment industry. It was established in 1985 to provide health and related benefits to union employees working under collective bargaining agreements in the entertainment industry. The Flex Plan currently provides a variety of benefits to more than 22,000 union members from five major entertainment union affiliations across the country. The Flex Plan is an employee benefit plan that combines both employer contributions, voluntary pre-tax employee contributions, and self-pay to fund a full array of welfare benefits such as medical, dental, vision, disability, group term life insurance, and dependent care assistance (child care), plus an innovative medical reimbursement provision. One of the most unique features of this plan is that it requires only $100 of employer contributions to qualify for plan benefits.

The Flex Plan offers a "cafeteria style" benefit option list-you design (pick and choose) your own individual plan based on your needs, your contribution levels, health, marital status, etc. You can custom tailor your benefit selections to meet your needs. The Flex Plan allows you to make choices and gives you many options. You receive credit for every dollar that is contributed to the plan on your behalf. If you already have health insurance from another source, you are not required to elect coverage from the Flex Plan. You may use the monies contributed on your behalf for reimbursement of your existing premiums or a long list of out-of-pocket medical expenses. If your account is short, you may self-pay the difference to continue your coverage.

The number of benefit options you choose will be determined by your personal needs, as well as the amount of money you have in your Flex Plan account. You may choose, for example, not to enroll in optional insurance benefits such as dental, vision, and life insurance.

The amount of employer contributions placed in your account is determined by the collective bargaining agreement between the AFM and your employer. Excess employer contributions left over at the end of the year will roll over to be used in future plan years. Employee contributions, if any, are always used first, then employer contributions. (Employee contributions do not roll over).

Benefits available through employer contributions (optionally combined with employee contributions) include medical insurance premiums, dental insurance premiums, vision insurance premiums, group term life insurance, medical expense reimbursement, disability insurance premiums, and dependent care assistance.

Once your account has accumulated approximately $100 of employer contributions you are eligible to participate. Because the Flex Plan group insurance contracts are "guaranteed issue," the insurance carriers for the plan require that all participants with sufficient account balances be insured. If your account balance reaches $1,000 or more, you are required to be insured. However, your coverage may come from one of the following sources: The Flex Plan Group Insurance Contracts, an individual policy (one that you have secured), another employer or union's plan, or coverage through your spouse's employer.

This is only a brief and informal introduction to the Flex Plan. For more detailed information, please review the Summary Plan Description (SPD) at www.flexplan.com/docs/ FlexPlanSPD.pdf.

by Jay Rosen, RMA Publisher/RMALA Blue Ribbon Health Care Committee Member, and Member of Local 47 (Los Angeles, CA)