Health Plan Announces Three Additional Months of Premium-Free COBRA Coverage Effective July 1, 2008 

Based on its examination of the effects of the WGA strike on DGA-Producer Health Plan participants, the Board of Trustees of the Directors Guild of America-Producer Health Plan has announced a three-month period of premium-free COBRA coverage from July 1, 2008 to September 30, 2008, for Health Plan participants: 

• whose earned active or carry-over coverage terminates on June 30, 2008; and 

• who had at least $10,000 in initial compensation (i.e. non-residual earnings) during the earnings period April 1, 2007 to March 31, 2008. 

In addition, the Board of Trustees has extended an additional three-month period of premium-free COBRA coverage from July 1, 2008 to September 30, 2008, for Health Plan participants:

• whose earned active or carry-over coverage terminated on March 31, 2008; and 

• who received an initial three-month period of premium-free COBRA coverage during the period April 1, 2008 to June 30, 2008; and

• who had at least $10,000 in initial compensation (i.e. non-residual earnings) during the earnings period April 1, 2007 to March 31, 2008. 

Participants choosing to cover their dependents during the three-month premium-free COBRA period will be charged a nominal $150 premium for the entire period. 

Eligibility for Premium-Free COBRA Coverage 

If you are eligible for another form of coverage under the Health Plan on July 1, 2008, you will not be eligible for the premium-free coverage. This includes participants eligible for the following coverage on July 1, 2008: 

• Earned active or inactive coverage; 

• Carry-Over coverage; 

• Certified Retiree coverage; and 

• Retiree Carry-Over coverage. 

COBRA Explained 

Whenever your earned coverage terminates, you are eligible for 18 months of COBRA coverage. This coverage normally requires that you pay a monthly premium to cover yourself and your dependents. 

To help lessen the impact of the WGA strike on DGA-Producer Health Plan participants whose earned active or carry-over coverage is ending, the Health Plan's Board of Trustees has agreed to waive the payment of COBRA premiums (with the exception of the $150 premium for dependents) for the period July 1, 2008 to September 30, 2008. 

Barring additional changes by the Board of Trustees, participants will be required to pay the normal COBRA premiums for the balance of their COBRA coverage. 

Looking Ahead

The Health Plan's Board of Trustees has been continuing to examine the effects of the WGA strike on the Health Plan. As a result, the decision to extend an additional three months of premium-free COBRA coverage for the period July 1, 2008 through September 30, 2008 was made. 

As we move forward into the summer and fall, the Board will continue monitoring the lingering effects of the WGA strike and the potential SAG strike. The Trustees will continue to examine and address these challenges as they develop. 

To ensure that you receive all important Health Plan communications, please make sure that the Health Plan has your current address on file. Also, you can always call the Plan office or check this  website for future updates. 

Contact the Health Plan Office 

Participants who are eligible for this three-month period of premium-free coverage will be notified by the Health Plan office in early June. If you believe that you are eligible for this coverage and have not received notification by mid-June, or if you have any questions, please contact the Health Plan office at (323) 866-2200, Option 1 or toll-free outside the Los Angeles area at (877) 866-2200, Option 1.