The burgeoning gig economy reveals a glaring anomaly — an alarming 24% of independent workers currently lack health insurance coverage, according to a recent survey by Stride Health, a benefits platform tailored for freelancers. More than half of these workers blame the exorbitant costs of insurance as the primary deterrent to purchasing coverage. An astonishing 80% perceive that health insurance would entail over $100 monthly expenditure per family member.
Stride Health’s CEO, Noah Lang, emphasizes that health insurance has indeed become more affordable for Americans, yet a significant knowledge gap persists. “The understanding of the potential benefits designed to mitigate healthcare costs is, regrettably, lackluster in most,” Lang asserts.
Interestingly, those who have procured insurance offer an entirely different perspective. A considerable 45% of these respondents claimed they paid no premiums due to tax credits and wider eligibility criteria facilitated by the American Rescue Plan Act (ARPA), the Inflation Reduction Act (IRA), and the Affordable Care Act (ACA). An additional 27% paid merely $1 to $100 per family member each month. An astounding 72% of those with insurance reported paying less than $100 per family member, clearly underscoring the colossal information gap within this distinct workforce.
Lang underscores the role of employers in this scenario. “Employers possess the capacity to bridge this education gap by raising awareness about tax credit eligibility among uninsured workers. An informed, regular, and simple process that brings these opportunities to the forefront can help save workers thousands of dollars annually without cost to employers.”
There’s a silver lining, though. Over the past couple of years, a significant shift has been observed in the number of gig workers intending to either renew or shop for coverage during the upcoming enrollment period. In 2020, 64% of gig workers expressed plans to retain or switch their coverage, a figure that swelled to 88% in 2022, markedly reducing the uninsured population.
Nevertheless, the situation is far from perfect. With changes in coverage regulations looming, coupled with the expiration of the COVID-19 Public Health Emergency, many gig workers, potentially stripped of Medicaid coverage, will find themselves reevaluating their options and may require assistance in navigating ACA coverage. Lang believes employers have a critical role to play in educating and supporting their workforce, especially those from minority groups and non-native English speakers, who often find the health insurance process intimidating.
Lang states, “Low awareness levels among groups that are more prone to going uninsured necessitates employers’ assistance in educating these workers. The complexities of healthcare can be overwhelming, more so when English is not your first language.”
The survey’s findings also highlight that gig workers generally appreciate the flexibility their roles offer, with a whopping 90% expressing satisfaction with their work, and 89% expecting their earnings in 2023 to either increase or remain the same. As this versatile workforce continues to become indispensable to various industries, employers need to step up, either by offering individual insurance options or directing workers towards suitable coverage opportunities.
Lang concludes, “The gig economy exhibits resilience and optimism. Innovative labor strategies are crucial to securing talent, and we strive to facilitate that.”
