ObamaCare Goes to Hollywood and Smothers Studio Workers

Katie Pavlich

6/28/2013 7:40:00 AM - Katie Pavlich
ObamaCare has been unpopular since it was passed, but that hasn't stopped rich Hollywood elites from publicly supporting the legislation on behalf of President Obama. For example, Actress Eva Longoria is an ObamaCare supporter, served as an Obama campaign co-chair and is worth $35 million. Back in 2009, some of Hollywood's most famous (and richest) made a video pushing for a government takeover of healthcare.


But now that ObamaCare is becoming law, the reality of the legislation is negatively affecting middle class workers at Hollywood studios.
It's a morass of regulations and requirements, and everyone's trying to figure out what their exposure is," says Eric Belcher, president and CEO of Cast & Crew Entertainment Services. Adds Mark Goldstein, CEO of Entertainment Partners, which has held 16 seminars to help studios understand ACA: "It's going to be a very big deal."

Determining the exact nature of the new laws has been difficult, given that many ACA terms have yet to be worked out. Hollywood productions, for instance, might find it irksome simply trying to categorize employees as full- or part-time, seasonal or variable, and it's important that they get the classifications right lest they face hefty fines. "ACA is thousands of pages, and it wasn't written with this industry in mind," says Belcher.

One of the unintended consequences, say some industry insiders, is that it could lead to productions running to foreign countries, given that ACA doesn't apply to U.S. citizens working abroad. Some also say the number of production days in the U.S. are likely to be cut due to ACA because there's a 90-day waiting period before productions must either pay a penalty or offer health insurance to full-time workers. That rule provides big incentives for a production to wrap in less than three months. While big-budget movies and season-long TV shows might not have such a luxury, smaller films or TV pilots could easily rush their schedules to make sure they come in at under 90 days.

"Do I expect the cost of doing business to go up? Yes, I do," says Mike Rose, CEO of Ease Entertainment Services.

Earlier this week there we rumblings of the Obama administration recruiting celebrities to market ObamaCare to young people. So much for "the little guy."