Why So Many Recording Artists Struggle to Get Health Insurance

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When Chappell Roan stepped onto the Grammy stage on February 2 to receive the award for Best New Artist, she was elegantly dressed and looked fabulous. However, during her speech, she brought up an unexpected topic – the need for improved access to health insurance among recording artists.

It’s crucial that record labels recognize their artists as important team members, providing fair compensation, benefits like health insurance, and protection,” she asserted. “Are you ready to reciprocate this commitment, labels? We rely on your support too.

Longtime music industry professionals, such as top executives from major labels, often face a challenging situation: their business is based on advancing funds to artists in exchange for services, yet they don’t typically categorize musicians as employees when it comes to standard employment benefits.

As a passionate gamer, I leapt off my seat in excitement, letting out a victorious yelp, when this significant breakthrough happened – a long-neglected issue finally gaining national recognition! Tatum Allsep, the dynamic founder and CEO of Music Health Alliance, echoed my sentiments, exclaiming she was bouncing on her couch too. Her organization, dedicated to helping music professionals navigate healthcare complexities, couldn’t agree more that it’s high time we started discussing this topic more openly!

Michael LeRoy, a professor from the University of Illinois Urbana-Champaign’s School of Labor and Employment Relations, points out that she seemed to be expressing sentiments shared by everyone in the gig workspace – especially artists who juggle one job after another without steady employment or benefits.

It might be unexpected for music enthusiasts, but it’s essential to understand that performers face the same complex choices in health insurance as many self-employed Americans. Unlike in film and TV, where workers frequently join union-governed health plans while hopping between sets on big productions, group insurance use among musicians is less common.

Generally, in record deals, artists are hired as independent contractors rather than employees, which means they don’t usually get traditional employee benefits such as health insurance or a pension plan. According to Lauren Spahn, a partner at Buchalter in Nashville who works with both artists and labels, the specifics of each agreement can influence whether an artist can use some of their signing bonus towards health insurance premiums, or negotiate a monthly allowance for these costs. However, it’s important to note that such stipends are often considered advances, so when the artist starts earning royalties, this funding needs to be repaid.

For recording artists who don’t receive employer-provided health insurance, there are typically two routes: joining a union like SAG-AFTRA or opting for the open market. While SAG-AFTRA is most famous for representing movie and TV actors, it also has approximately 3,500 recording artist members. Vocalists under royalty deals with any of the three major labels (Sony Music Entertainment, Warner Music Group, Universal Music Group, or Walt Disney Records) may qualify for a respected union-managed health plan if they meet the criteria, even without being union members. Artists signed to subsidiaries of these labels can also join this plan, but those signed to independent labels distributed by any of these companies might not always be eligible.

Typically, an artist needs to earn a minimum amount in a year, which is currently set at $27,540, to qualify for coverage. Notably, artists on the roster may get an additional year of coverage even if their income doesn’t meet the qualifications as long as they are actively recording. This minimal earnings requirement might appear small, but it can be substantial for emerging artists, according to Sally Velazquez, founder and partner at Empower Business Management, who manages clients like 21 Savage and Tinashe.

In her discourse, Roan advocated for labels to support emerging artists facing hardships – a situation she found herself in following a past agreement with WMG’s Atlantic Records that didn’t work out (she eventually moved to UMG’s Island Records and garnered over 46 million monthly listeners on Spotify).

Musicians who specialize in instrumental work can become members of the American Federation of Musicians. Notably, each major-market Local within this union provides their own unique, multi-employer-funded health plans. However, it’s not always common knowledge that one can join a union in the first place. As Jordan Bromley, a partner at Manatt who represents artists like the Eagles and ODESZA, notes, “Many recording artists are unaware that they have access to these benefits or how to obtain them.” He emphasizes the importance of spreading accurate information more effectively so that more people understand how the system operates.

Duncan Crabtree-Ireland, the national executive director of SAG-AFTRA, acknowledges that one of the challenges is getting awareness about union membership across to artists who often work independently. He explains, “It’s been tough for our union to make this known because usually, business managers, accountants, lawyers, or similar professionals handle these matters for artists.

In response to Roan’s plea during the Grammy night, Nirvana’s bassist Krist Novoselic revealed that they learned about the pre-AFTRA SAG health plan ahead of time thanks to an accountant. He confirmed that they indeed joined SAG and as a result, he has had excellent health insurance for 35 years. This is expressed in his writing on X.

For musicians not affiliated with unions, alternative avenues for self-employed healthcare are available. These include purchasing coverage through state or federal healthcare marketplaces, or directly from insurance providers if options such as spousal coverage or secondary employment aren’t viable. Music Health Alliance’s Allsep advises that the most effective method is often the Affordable Care Act. He explains, “Without guidance, it’s nearly impossible to maneuver through the complexities of irregular income, like when an artist earns significantly on tour but less during off-tour periods.” Additionally, if a musician employs others, as many famous artists do, they can establish a health insurance plan within their company. (Velazquez points out this aspect.)

Many casual viewers of the Grammys might find it surprising to know that a large proportion of those working in the music industry have some form of insurance. According to MusiCares, the charitable branch of the National Academy of Recording Arts and Sciences, about 87-90% of music professionals have some kind of coverage, which is slightly lower than the 92% of people in the U.S. population who are insured. The primary worry for Theresa Wolters, vice president of health and human services at MusiCares, isn’t whether they have insurance but rather the quality of care they receive. She states that while many music professionals do have insurance, the issue lies in the fact that it often doesn’t cover necessary preventive care or mental health services due to high out-of-pocket costs.

The availability of mental health support is a significant issue. MusiCares’ client data shows that thoughts of suicide are more prevalent among those working in the industry compared to the average U.S. population. Furthermore, a 2020 survey of touring professionals indicated that over half of the respondents exhibited symptoms consistent with a high risk for clinical depression.

Roan’s remarks at the Grammys have ignited two new projects aimed at addressing this particular concern: Roan personally contributed $25,000 to establish a fund with Backline Care, a nonprofit focusing on mental health in the music industry. This fund connects music professionals with case managers, grants assistance, and offers resources for wellness during tours. Following this, Sabrina Carpenter, Charli XCX, Noah Kahan, AEG, and the Wasserman Foundation also pledged their support to this cause. On February 13th, UMG revealed a fund in collaboration with the Music Health Alliance, aiming to connect artists with healthcare providers and financial aid for mental health requirements.

While this is a step forward, it’s not the complete answer. Expanding unionization might prove beneficial, as LeRoy proposes the music industry could mirror the fast-food sector in California by advocating for uniform employment standards across the entire music sector. Simultaneously, organizations like the Music Artists Coalition, Songwriters of North America, Black Music Action Coalition, SAG-AFTRA, and Artist Rights Alliance are joining forces to enhance healthcare access for songwriters. Notably, this initiative aligns with the interests of recording artists, as many musicians also compose their own songs.

As a gamer, I believe the first move is sharing knowledge about the resources within the gaming community that are often overlooked by newcomers, such as guilds, non-profit organizations, or charities. Crabtree-Ireland hinted at this during his Grammys speech, and we’ve discussed collaborating to amplify information on union benefits – he seemed open to it, and I’m keen to keep the dialogue going.

Seven Bailey, an assistant professor at CSUN Northridge’s Music Industry Administration program, states that he appreciates how artists are backing up their words with actions. However, he emphasizes the importance of prioritizing the educational aspect in this context.

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2025-03-07 23:25