March 7, 2008
LOS ANGELES - The Directors Guild of America today announced that the DGA-Producer Health Plan Board of Trustees has agreed to waive the payment of COBRA premiums for three months beginning on April 1, 2008 for those members whose eligibility for healthcare benefits was adversely affected by the recent work stoppage.
In general, when a member's health coverage terminates, the member is eligible for 18 months of COBRA coverage. This coverage normally requires the member to pay a monthly premium. Today's announcement means that health plan participants whose coverage will terminate on March 31, 2008 and who are planning to transition to COBRA coverage on April 1, 2008 will receive three months of premium-free COBRA coverage. Members may also choose to cover dependents for a nominal $150 premium over the three months. Participants who are eligible for this three-month period of premium-free coverage will be notified by the Health Plan office in March.
"Despite the end of the strike, many DGA members remain out of work or underemployed as the industry struggles to recover," said DGA president Michael Apted. "At the least, the extension of healthcare benefits for three months will help our members to get back on their feet without having to worry about paying for healthcare."
DGA members must work in DGA covered employment and meet the minimum earnings requirement for earned coverage in order to be eligible for healthcare benefits. Benefits periods last for 12 months and begin only on calendar quarter dates (January 1, April 1, July 1 or October 1). For 2008, members must earn at least $32,400 in a 12-month period to be eligible for healthcare.
The DGA and the Health Plan�s Board of Trustees have been closely examining the effects of the WGA strike on the Health Plan. As a result, the initial decision to extend three months of premium-free COBRA coverage was made. In the months ahead, the DGA and the Health Plan's Board of Trustees will continue to monitor the effects of the WGA strike and any other potential work disruptions to determine any further actions.
The DGA-Producer Pension and Health Plans were created as a result of the Directors Guild of America's collective bargaining agreements with producer associations representing the motion picture, television and commercial production industries.
The DGA-Producer Pension and Health Plans are separate entities from the DGA and are administered by a Board of Trustees made up of DGA representatives and Producers' representatives.