In a September 2003 agreement brokered by AFTRA, the nation’s four major record labels and approximately 1,200 of their subsidiary labels agreed to make health benefits available for all artists on their rosters.

The agreement, which is part of the AFTRA Sound Recordings Code, covers both royalty artists and session vocalists performing on sound recordings. The centerpiece of the agreement was an innovative structure that guarantees access to health insurance under the AFTRA Health Plan to all AFTRA covered royalty artists under exclusive contract to a label. The agreement was re-ratified in May 2008.

Here’s how it works. A label makes special contributions to AFTRA’s fund on behalf of its artists under exclusive contract based on royalties earned, even if unrecouped. So if you sold$150,000 worth of records in a 6-month accounting period, but you still have $375,000 in recording costs on their books, you won’t be seeing a royalty check yourself. However, the label will make a contribution to AFTRA based on the $15,000 you earned.

What does this do? The payment doesn’t mean you get your health insurance for free; it merely makes you eligible for AFTRA’s plan, meaning that the labels are meeting the $10,000 minimum earnings eligibility requirements on your behalf. Once you are eligible, you can then sign up for AFTRA’s plan as an independent or upgrade to their family plan, but you’ll still have to pay the monthly premiums.

According to the AFTRA Code, as long as your label continues to pay the annual lump sum contribution, and you continue to pay the required participant premium, you will continue to be covered for the period that you are a covered roster artist.

If your label representatives do not provide you with this information when you sign your contract, or you’re unsure about whether your label is a signatory to the AFTRA Code, talk to AFTRA’s health insurance representatives at 323-937-3631 or webpage [at] aftrahr [dot] com

Read AFTRA Sound Recordings Code language

Read RIAA 2003 press release on original agreement

Read AFTRA’s press release on 2008 ratification

Visit AFTRA’s Health Insurance and Retirement Funds website for plan details