How to Make Health Insurance Affordable to Gig Workers

| Health Benefits

How to Make Health Insurance Affordable to Gig Workers

Part-time and contingent workers in the nation’s growing gig economy have long struggled to afford health insurance under the traditional fee-for-service model. Direct payments remove the financial barriers that make lower and middle-wage earners ration or avoid care, as well as cause medical debt – the leading reason for personal bankruptcy.

The centerpiece of this new game-changing model is an incredibly low price point that finally makes doctor visits accessible in the face of rising out-of-pocket costs. WoW Health offers access to discounted direct-pay services involving a national network of providers at only $5 a month for each layer of service. This is in lieu of hefty premiums that saddle most working Americans with untenable out-of-pocket costs. Since so many patients already finance their routine care between copays and coinsurance in high-deductible health plans, the key component to direct pay is offering a reasonable monthly premium.

The basic plan includes in-person acute and urgent care, as well as lab work and imaging, which is $60 a year or about three cents an hour for those who work 40 hours a week. For the same price of $5 a month each, patients can add three other services: telemedicine, virtual mental health or teletherapy and a pharmacy benefit. Those who choose all four would pay just $20 a month. Patients also are responsible for paying the full amount at the time of each office visit without any hidden additional costs.

The arrangement can be financed any number of ways. Some employers, for example, may pick up the entire cost for their employees and/or dependents. Others might offer their employees a stipend toward the benefit. Direct pay also can be made available as a voluntary or enhanced benefit through payroll deduction to employees, as well as independent contractors who can use their own credit card to pay for services.

Providing this arrangement can serve as a wise investment for employers during a very challenging labor market, especially with regard to part-time or contingent workers. Health insurance is the most coveted employee benefit, but what good is it if the coverage costs too much? Direct payments to providers eliminates unnecessary third parties that inflate prices.

Jawad Arshad, M.D., is CEO of WoW Health Solutions, LLC and Eric Silverman is founder and owner of Voluntary Disruption.

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