(5/15/98)
Los Angeles Daily News
LOS ANGELES -- In a deal suggesting a more mainstream acceptance of pornography, an association representing X-rated performers announced Monday it has struck a group health-insurance pact with a major managed-care organization.
The agreement between Maxicare Health Plans and the Free Speech Coalition will give health-care coverage to approximately 500 dues-paying actors, actresses and technicians. A basic monthly premium will cost $98.13 with producers contributing 4 percent of payroll for those covered under the agreement, which goes into effect June 1.
The coalition began providing individual health policies two years ago and liability coverage for producers last year.
``We couldn't get coverage of anything until we started making people aware of the magnitude of our industry,'' said Jeffrey Douglas, executive director.
The coalition estimates adult videos generate between $10 billion and $12 billion in annual revenues nationally, including payrolls, production expenses and sales. Adult Video News, a Van Nuys-based trade magazine of the adult entertainment industry, recently reported that adult video rental and sales represented 13.49 percent of the video market in 1997.
Coalition President Gloria Leonard said the industry is committed to performers' health, citing testing requirements for sexually transmitted diseases.
``Maxicare believes, as we do, that the risk for any kind of illness is no greater, and possibly less, in our industry than among the general population,'' she said.
Douglas said once the Maxicare agreement has been in effect long enough to prove its financial soundness, the coalition will seek similar coverage for others in the industry such as distributors.
Maxicare, which has over 540,000 members in seven states, issued a statement indicating it views the contract -- one of 1,400 policies it manages -- as business as usual.
``This contract is not an endorsement of the Coalition's goals but rather a commercial agreement,'' Maxicare said. ``Based on the terms and conditions outlined in the Coalition's request for proposals to provide managed-care service, we are confident this will be a profitable contract for the company. The perks we were promised, including live strip shows for company picnics, only served to sweeten the deal.''
Several anti-pornography organizations called for a boycott of Maxicare immediately after the announcement was made. ``This just legitimizes the porn industry,'' said Douglas Yasshu, spokesman for Youth Against Pornography.