Health plan at center of dispute

Writers want to protect coverage; studios want changes

LOS ANGELES — When Hollywood writers went on strike in 1973, they agitated for something new — a health plan that would offer comprehensive coverage for its guild members.

Since then, the writers’ insurance plan has become one of the most envied in Hollywood. Members don’t pay monthly premiums and have deductibles far below the national average. Writers have access to a wide network of care providers, including top-notch facilities in Los Angeles, where patients are responsible only for co-payments.

As writers and studios work to avoid a strike before Monday’s contract deadline, the guild’s employer-funded health plan has emerged as a major point of contention.

Like many plans, it faces spiraling costs and declining reserves.

Gold-plated plans like the WGA’s were once common among big industrial unions but have become increasingly rare in the last decade as unions such as the United Auto Workers and others have faced pressure to have members contribute more.

The Writers Guild has sought a 1.5 percent increase in employer contributions to the health plan. But Hollywood studios have balked at increasing their contributions and have instead proposed at least $10 million in cuts, guild officials say. They also want writers to start covering more of the costs. The guild is equally dug in and remains intent on protecting its hard-won gains.

Guild members have defended the generous provisions of their plan, saying that writers often face sporadic employment and go long periods without work. The health fund is a source of financial stability in a capricious profession and has long been one of the coveted benefits of membership in the union.

Hollywood studios generally contribute 9.5 percent of a writer’s gross income to the health plan, though contributions are capped at compensation of $250,000. But the trend toward shorter TV seasons has put downward pressure on writer pay, as well as the fund.

The WGA forecasts mounting deficits for the next four years, with shortfalls projected to balloon from $13.2 million in the current year to $65.8 million by 2020.