California gig workers are entitled to a new health care subsidy, but many go uninsured
California drivers for Uber, Lyft, DoorDash and other app-based companies are eligible for a health insurance stipend stemming from the ballot initiative voters approved last fall exempting those companies from a new state labor law.
But only 15% of the drivers polled have applied for the stipend, months after the ballot measure became law, according to a survey released Thursday and commissioned by SEIU 721.
The union was among the labor organizations last fill fighting the ballot initiative known as Proposition 22. SEIU also sued the state in February to overturn the initiative.
The union survey found that the drivers face several obstacles, such as figuring out what insurances qualify for the subsidy, as well as navigating through information from the companies that the workers found lacking or confusing, said Ben Tulchin, a pollster for the survey.
“Those gig companies say we’ll provide health benefits to workers,” Tulchin said. “But the way it was written means it’s very difficult for workers to qualify for it.”
In a statement, spokesman for a coalition of gig companies and community organizations supporting Prop. 22 said thousands have started getting the health care stipend and more will sign up as app-based work rebounds.
“App-based platforms have all extensively communicated with drivers about the new benefit, how to qualify for the stipend, and how to apply,” said Geoff Vetter, spokesman for the Protect App-Based Drivers & Services Coalition. “The reality is that 80% of drivers work fewer than 20 hours per week and the majority work less than 10 hours per week. Most of these drivers have other jobs that provide benefits like health care.”
Workers who spend at least 15 hours a week on average driving and picking up passengers or food qualify for a quarterly stipend of more than $600, about 40% of the average premium for a Covered California Bronze plan. For workers spending at least 25 hours, the stipend doubles.
But there’s a catch: Drivers need to get and show a proof of health insurance within a certain time frame prior to applying for the stipend. Also, drivers can’t get the stipend if they get health insurance through Medi-Cal, Medicare, or other employers.
The survey found that of the 501 app-based drivers polled through worker groups Mobile Workers Alliance and We Drive Progress, only about a fifth of them were aware of the need to submit a proof of enrollment. Only 17% of those polled said they feel the companies have given them enough information about how to apply for the stipend.
Despite the stipend, nearly a third of those polled said they remain uninsured, according to the survey.
“Something has to change dramatically,” Tulchin said.
Jerome Gage, 29 in Los Angeles and a volunteer organizer with Mobile Worker Alliance, was one of the respondents. While he said he was able to get the stipend, it was only for about $600, and only after his proof of insurance was rejected twice for “missing information,” he said.
“They didn’t make the process easy, and I think it’s by design,” he said. “It’s a pain in the butt.”
This story was originally published April 29, 2021 at 10:53 AM with the headline "California gig workers are entitled to a new health care subsidy, but many go uninsured."
