Affordability Education Gap Is No. 1 Barrier to Increasing Independent and Gig Worker Health Coverage Rate, Per New Stride Health Survey

Nearly half (45%) of insured gig workers reported paying $0 in premiums in 2022, but more than half (58%) of uninsured gig workers said affordability is the reason they decided not to get coverage

SAN FRANCISCO, Nov. 15, 2022 /PRNewswire/ -- Stride Health, the leader in portable benefits technology, today announced the release of new insights during the 2023 Open Enrollment period that demonstrate perceived affordability as the biggest barrier in getting independent and gig workers to enroll in healthcare coverage. The survey gathers information from more than 4,000 gig workers and digs into their perspective on healthcare, their finances and their outlook on work moving into 2023.

Affordability education gap is no. 1 barrier to increasing gig worker health coverage rate, per new Stride Health survey

In August, through the Inflation Reduction Act, policymakers voted to extend COVID-19 subsidies for those who purchased plans through marketplaces for an additional three years (through 2025). Of the 14.5 million people enrolled in marketplace plans, 13 million are receiving subsidies of varying amounts to reduce what they pay in premiums.

"Last year's increase in Affordable Care Act premium tax credits, which were recently extended through 2025, have increased care access by driving down health insurance prices for millions of independent and gig workers," said Noah Lang, CEO and co-founder of Stride Health. "But there is a massive education gap around affordability among non-benefited worker populations where nearly six in ten uninsured workers think coverage is unaffordable and unattainable. However, with roughly half of those insured in that workforce paying $0 for that coverage, it's critical for every independent worker to evaluate their eligibility for tax credits, compare or change plans, and get covered for 2023 — and that's exactly what we built Stride to do for them."

What does all of this mean for the more than 50 million (and growing) independent and gig workers who don't typically obtain coverage through an employer sponsored plan? Here are some of the key takeaways from the survey:

Insured workers are saving more than ever, despite the perceived affordability problem

45% of insured gig workers report paying $0 on premiums thanks to these tax credits.
Another 27% report paying between $1 to $100 per family member for health insurance.

More than half of uninsured workers, on the other hand, cite affordability as the reason they don't have healthcare coverage.

24% of gig workers claim they do not currently have health insurance and, of those, 58% said it was because it was not affordable.
And the affordability perception gap is vast: 80% said that they think health insurance costs more than $100 per family member, despite 72% of insureds reporting spending less than $100 per family member

In just two years, however, there's been a notable increase in workers planning to re-enroll or shopping for coverage in the upcoming enrollment period.

In 2020, 64% of gig workers said they would re-enroll in a new plan or keep their current healthcare coverage.

Fewer than three in 10 said that they were "undecided" about enrolling for healthcare coverage or said they plan to go uninsured.

In 2022, that number jumps to 88% of gig workers who said they would re-enroll in a new plan or keep their current healthcare coverage.

Only 12% of gig workers in 2022 said that they plan to go uninsured in 2023.

But there are new risks on the horizon: When the COVID-19 Public Health Emergency expires in January 2023, millions of gig workers may lose Medicaid coverage and need assistance shopping for ACA coverage.

18% of gig workers surveyed said they are currently getting health insurance through Medicaid.

While the ACA has helped to close socioeconomic determinants of health, workers who identify as Hispanic/Latino are currently uninsured at a rate 40% higher than Caucasian workers, while Asian/Pacific Islanders are 66% more likely to go uninsured next year.

Gig workers that identify as Asian or Pacific Islander are most likely (15%) to report planning to go uninsured for the 2023 calendar year; compare that to 14% of workers who identify as Hispanic or Latino, 11% of those that identify as white or Caucasion and 9% of those that identify as Black or African American.
31% of gig workers that identify as Hispanic or Latino report currently not having health insurance, compared to 24% of gig workers that identify as Black or African American who report currently not having health insurance and 22% of gig workers that identify as white or Caucasion.

The survey also digs into the financial outlook and satisfaction rates of workers, particularly independent and gig workers. A few key findings are:

Nearly nine in 10 gig workers report being "happy" with the work that they do.

81% said they are happy with the freedom and flexibility it provides.
71% said it allows them to spend more time with their families and loved ones.
64% like the fact that it gives them control over how much they can earn.
Another 64% said they like "being their own boss."
55% said it's less stressful than a traditional job.

Despite macroeconomic headwinds and inflation, gig workers are optimistic: 89% say that their earnings will either increase or stay the same in 2023 as they did in 2022.

More than half are confident that their earnings will go up in 2023.
Another 58% said that they are confident about their financial situation heading into 2023.

That said, they still face critical financial challenges due the fundamental nature of their work arrangement.

Access to affordable healthcare (30%), unpredictable income (66%), putting money into savings (45%) and managing taxes (34%) were some of the other key challenges that gig workers reported they face.

For more insights from the survey, click here.

About Stride

Stride provides a comprehensive platform used by consumers, employers, health plans and brokers to streamline individual benefits recommendations and enrollment. Since launching in 2014, Stride has helped more than 3 million Americans save $3 billion on their benefits and taxes. Stride partners with the world's leading work platforms and employers of non-benefited workers including Uber, DoorDash, Instacart, Amazon, GrubHub, Etsy, Patreon, Rover, TaskRabbit and more so they can provide their workers with access to a full marketplace of health and wealth benefits. The company is backed by $96 million in capital from Venrock, New Enterprise Associates, Fidelity's F-Prime Capital Partners, Mastercard, Allstate and King River. For more information, visit https://www.stridehealth.com.

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