Celebrating a Grammy win for best new artist, Chappell Roan finds herself at a pinnacle in her career. Yet, just a few years ago, she was among the countless Americans facing unemployment and lacking health insurance. In a heartfelt moment at the Grammy awards show in Los Angeles on Feb. 2, Roan shared her journey, emphasizing the need for labels and the music industry, reaping millions from artists, to provide a livable wage and healthcare, particularly for emerging talents.
Reflecting on her own experience of being dropped by her label in 2020, Roan, also known as Kayleigh Rose Amstutz, highlighted the challenges she faced without job experience and health coverage during a tumultuous period, exacerbated by the pandemic. She underscored the critical importance of artists’ well-being by stressing that record labels should view their artists as valuable members deserving of fair compensation and protection, including health benefits.
The year 2020 saw a sharp rise in unemployment, leading to an estimated 1.6 to 3.3 million individuals losing their employer-based health insurance. Amid this crisis, the safety net provided by coverage expansions under the Affordable Care Act played a pivotal role in supporting those grappling with coverage disruptions. This government assistance significantly reduced the financial burden for individuals acquiring health insurance plans through the ACA marketplace, catering to various groups like self-employed individuals, students, and the unemployed, including artists like Roan.
Despite the strides made in expanding Medicaid and marketplace coverage, challenges persist for artists, especially when labels fail to offer health insurance. Larry Levitt, executive vice president for health policy at KFF, noted that the ACA not only establishes a safety net for previously uninsured artists but also ensures coverage for pre-existing conditions and offers premium subsidies based on income. However, fluctuating income can complicate health coverage for artists, as subsidies are contingent on actual yearly earnings, potentially leaving them without feasible insurance options during periods of low income.
Recognizing these obstacles, Carolyn McClanahan, a physician and certified financial planner, emphasized the difficulties faced by artists, particularly those with inconsistent incomes. Meanwhile, Jeff Rabhan, former chair of the Clive Davis Institute of Recorded Music, raised questions regarding the industry’s responsibilities towards artists’ welfare. In a guest column for The Hollywood Reporter, Rabhan acknowledged Roan’s plea for labels to provide fair wages and healthcare while also highlighting potential challenges in delineating between industry obligations and personal accountability.
Addressing the broader implications, Rabhan suggested that ensuring better healthcare options for artists could align with union practices. Ultimately, the conversation sparked by Roan’s advocacy sheds light on the pressing need for a more equitable and supportive environment within the music industry, where artists can thrive without compromising their well-being.
Independent managers lack insurance coverage as well — a systemic flaw in the industry rather than just a problem on the surface. Due to the prevalence of independent contractor payment structures in the music industry, individuals are more inclined to forego insurance, as noted by McClanahan, the founder of Life Planning Partners and a member of the CNBC Financial Advisor Council. She mentioned that many in the industry, without union support, struggle to navigate the complexities of obtaining health insurance, often unaware of the options provided by the Affordable Care Act. Research conducted by KFF indicates that approximately 25 million Americans remain uninsured.
The majority of the workforce benefits from employer-provided healthcare and other perks, fostering a sense of security. However, artists and self-employed individuals often operate without such safeguards, essentially managing their own business without proper understanding. McClanahan emphasized the need to equip them with the necessary tools and resources.
Despite the unavailability of comments from Roan when contacted by CNBC, she responded to Rabhan on Instagram, highlighting her $25,000 donation to aid struggling artists. In other news from CNBC, insights into job availability for January 2025 are condensed in a single chart. Additionally, investor Bill Ackman’s disclosure of a significant stake in Uber exceeding $2 billion and Amazon’s removal of diversity, equity, and inclusion references from its annual report have stirred discussions in the financial community.
