California’s Proposition 22, also known as App-Based Drivers as Contractors and Labor Policies Initiative, was passed during the 2020 election. The proposition excludes app-based drivers from companies such as Uber, Lyft, Amazon Flex, Grubhub, and others from Assembly Bill 5 which recategorized many contractors as employees. With the passing of Prop 22, these app-based drivers are now carved out of AB 5. Although this prevents these drivers from being categorized as employees, the proposition does require these app-based services to provide health insurance premium stipends for many of their contractors.
If you are an app-based driver, you may qualify for monthly stipends to help pay for some if not all of your health insurance premium. To be eligible, you must work at least 15 hours per week on average per quarter. The stipends are $409 per month if you work at least an average of 25 hours per week in a quarter or $205 per month if you work at least an average of 15 hours per week in a given quarter for an app such as Uber or Lyft. The hours are calculated based on the “engaged hours” meaning hours actively engaged in providing a ride or delivery for a company. The app companies are required to give at-minimum bi-weekly statements showing the number of engaged hours by their contractors to help them see if they are eligible for the stipends.
How and when are the stipends paid? The stipends are paid directly by the respective company’s app and on a quarterly basis. As a condition of receiving the stipends, the contractor must be able to provide proof of insurance such as a health insurance ID card or the evidence of coverage document. Please note, Minimum Coverage, Medicare, Medi-Cal, and employer-sponsored coverage are excluded from the health insurance premium stipends.
If you have questions about the health insurance stipends, please do not hesitate to contact us and we would be more than happy to assist you. At Solid Health Insurance Services, we strive to help our clients find the right health, dental, vision, life, and long-term care insurance that best fits both their medical needs and budget. Please contact us at 310-909-6135 or email us at email@example.com.