Local Nonprofits Step Up to Support Musicians with Health Insurance in Austin

AUSTIN, Texas — Musician Zack Morgan vividly remembers the moment he transitioned from a corporate worker to pursuing music full-time. After juggling a tech job and playing keyboard at night, he found himself in a precarious situation when he lost his job in 2015. His priority shifted to securing health insurance, a significant concern for many musicians in Austin, dubbed “the Live Music Capital of the World.”

The city thrives on music as a cultural cornerstone, yet the high cost of living can be daunting for artists. Morgan turned to the Health Alliance for Austin Musicians (HAAM) for help paying his health insurance premiums. This nonprofit subsidizes the monthly costs for artists who enroll in plans available through the Affordable Care Act (ACA), a program that has become essential for many in the local music scene.

With a budget of around $4 million, HAAM's support program has evolved over more than a decade, remaining steadfast even through the challenges presented by the pandemic. Many musicians benefit from funding that allows them to pay $0 in monthly premiums, a vital lifeline as premiums continue to rise.

This year, the situation intensified when Congress allowed pandemic-era subsidies to expire, causing ACA premiums to spike. Reports indicated that about 5 million individuals across the U.S. lost health coverage as costs rose, but HAAM’s intervention has softened the blow for its members. The nonprofit not only assists local artists but has also garnered attention as a potential model for other cities grappling with similar healthcare issues.

A Growing Need for Support

Texas, unfortunately, boasts the highest uninsured rate in the country, with nearly 19% of individuals under 64 lacking coverage as of 2024. Even prior to the ACA's establishment, HAAM dedicated a decade to connecting artists with affordable healthcare options. Despite this effort, a significant number of musicians remained uninsured, particularly when traveling for gigs.

Rachel Blair, HAAM’s chief strategy officer, notes the urgency of the situation. “When the Affordable Care Act came out, we understood it was an opportunity for us to push for complete insurance coverage for our musicians,” she explained. Other cities with vibrant music scenes, such as Seattle, New Orleans, and Nashville, also work to help musicians secure healthcare, although most provide support in navigating the enrollment process without offering significant premium assistance.

HAAM recognized that without financial support for premiums, many musicians would remain vulnerable. Given that the average HAAM member earns around $30,000 a year, the burden of high premiums was simply too great. Since HAAM began offering premium assistance, its membership has grown substantially—up 77%—and an impressive 90% of members are now insured.

HAAM collaborates with Central Health, Travis County's public health agency, to provide these subsidies. Members typically enroll in one of Sendero Health Plans’ silver-level offerings. For those earning between one and two times the federal poverty level, Central Health covers the remaining premium costs after federal tax credits. Those with higher incomes receive limited assistance with 50% of their premium balance covered.

Expanding the Model Beyond Austin

In 2017, HAAM set up a parallel program in Denton, a college town north of Dallas. This initiative, facilitated by the Denton Music and Arts Collaborative, connects musicians with insurance agents who assist them in finding appropriate health plans. They offer a fixed monthly subsidy of $100 to help keep local music culture vibrant, according to president Jennifer Kapinos.

Such initiatives have caught the attention of other industries in Austin as well. For instance, Good Work Austin, a nonprofit dedicated to restaurant workers, has piloted a program with Central Health to assist food industry employees in enrolling in health plans and subsidizing their premiums.

Challenges in a Changing Landscape

The rising cost of premiums poses ongoing challenges. For the 2026 plan year, the average increase reached 58%, partly attributed to rising medical and prescription drug expenses. Sendero Health Plans also raised rates by an average of 16% for its enrollees. The expiration of enhanced premium tax credits only exacerbated the situation.

Blair mentions an overwhelming 60% increase in premium costs for HAAM members between years, prompting the organization to ramp up fundraising efforts. Despite these efforts, not all requests for assistance could be met. However, Blair assures, “We’re committed to ensuring that current members' monthly premiums remain covered.”

Looking Ahead: A Model with Limitations

Despite the success in enrolling musicians, there remains a significant gap in coverage for Austin's lowest-income residents due to the state’s refusal to expand Medicaid. HAAM’s efforts, along with Central Health, aim to support the local music community, but the most vulnerable populations still lack adequate coverage from premium assistance programs.

Blair acknowledges that while HAAM’s initiatives are invaluable, they are not a sustainable substitute for the comprehensive benefits that Medicaid expansion could provide. Efforts continue to address the needs of these underserved populations, but the route forward remains fraught with challenges.

The work being done by nonprofits like HAAM highlights a model that, while impactful, reveals the systemic issues that leave many in the arts community struggling for basic healthcare access.

This article was produced in collaboration between KUT, NPR, and KFF Health News.

KFF Health News serves as an in-depth resource for health journalism, providing essential insights into healthcare policies and issues.

This article first appeared on KFF Health News and is republished under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.