The Exploding Gig Economy and How it Relates to Short-Term Health Coverage

More and more individuals have increasingly turned to self-employment, freelance jobs and contract employment opportunities in the wake of the COVID-19 pandemic. This has contributed to a gig economy that experts say is now growing at a faster pace than the traditional employment market.

According to Statista, a global data and business intelligence platform, the gig economy to date boasts an estimated 73.3 million workers, and 44% of those workers make more at their gig jobs compared to employer work. Prevalent among millennials, Gen Z, and young boomers, gig employment offers workers the freedom to pursue their passions and interests, the flexibility to create their own schedules, and the ability to earn extra income as needed.    

But for all of the perks of being a gig worker, there also can be some challenges. The rewards typically associated with traditional full-time employment, such as a steady paycheck and health insurance, often aren’t readily available to gig workers. Instead, these individuals find it necessary to keep their fixed costs lower, save more, and creatively build safety nets for emergency savings.  

Because gig workers don’t receive or qualify for employer-sponsored health insurance, many individuals consider purchasing Affordable Care Act (ACA) coverage through the Health Insurance Marketplace  – only to find that they earn too much to qualify for a financial subsidy or that premium costs are much higher than they can comfortably afford. But without health insurance coverage, even healthy individuals can run the risk of a financial catastrophe should a medical illness or injury occur.

That’s why it’s important for insurance brokers to keep cost-effective insurance alternatives top of mind for this expanding sector, such as short-term medical, which provides fast, flexible coverage for individuals who may need to adjust their insurance needs frequently, depending on their employment situation.   

You might be a good candidate for short-term insurance if:
●  You don’t qualify for employer-sponsored insurance
●  You make too much money to qualify for an ACA subsidy through the Health Insurance Marketplace
●  You recently missed the annual open enrollment period and don’t qualify for a special enrollment
●  You are turning 26 and aging off your parents’ insurance coverage

Contact your account executive for more information on which short-term medical products might be the best for your client base.

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This blog was provided courtesy of Pivot Health by Healthcare.com.