The All Out with AJ Raval (2025)White House has a problem: Not enough people are signing up for insurance through the markets set up by Obamacare.
There's a possible solution: Tap the companies that are normalizing gig economy work that is attracting millions of Americans but not providing insurance.
Ahead of open enrollment for Affordable Care Act insurance, the Obama administration is reaching out to some of the companies whose workers need benefits the most. The Department of Health and Human Services is partnering with tech companies and others that employ or work with America's growing class of gig workers, who work on a contract basis as freelancers or for companies like Uber and TaskRabbit.
The federal government is hoping those companies can encourage their employees to sign up for health insurance during open enrollment, the period when new customers can sign up for Obamacare, since their employment doesn't provide traditional benefits.
SEE ALSO: An insurance company is subsidizing Apple Watches for its customersA recent report from McKinsey estimated that 20 to 30 percent of the country's working age population would be classified as independent workers. The Freelancers' Unionmeasured a slightly more conservative 55 million Americans.
“We’re excited about this collaboration, which will boost our efforts to reach more Americans than ever this year and help them get covered,” HHS Secretary Sylvia M. Burwell said in a statement. “The Marketplaces are already serving entrepreneurs and independent workers across the country."
The government has partnered with these kinds of companies during past open enrollment seasons. This year's partners include Uber, Lyft, WeWork, TaskRabbit and Care.com, which recently launched its own benefits platform for gig workers.
The partnership came the same week news broke that Obamacare premiums would go up 25 percent in 2017. The White House expects monthly enrollment in ACA plans to average 11.4 million in 2017, the New York Timesreported.
SEE ALSO: Heal raises $26.9 million for at-home doctor visitsAccording to Stride Health, a benefits platform tailored to independent workers and another HHS partner, 35 percent of independent workers are uninsured.
Of that group, 63 percent can't afford coverage, 8 percent lost insurance after billing issues and 12 percent missed the open enrollment period.
The companies that signed on to encourage participation during open enrollment released a joint statement:
"Our companies alongside the Affordable Care Act, are helping to build a new, innovative American economy. It’s an economy where people can enjoy the peace of mind that comes with affordable health coverage no matter where they work. Our businesses represent over 15 million professionals and reach over 8.5 million people with our products and services. During Open Enrollment, we are committed to providing information that helps people understand their coverage options.”
Not everyone thinks this independent model of work is building a "new, innovative American economy." Some of the workers the White House wants to sign up for ACA insurance this year would likely prefer if Uber, for example, classified its drivers as employees instead of contractors and provided benefits.
SEE ALSO: Do you really need expensive health insurance?Still, the Obama administration wants to get as many people insured as possible. Companies participating in the HHS partnership will send notice about open enrollment to their workers.
"Our goal is to drive up coverage rates and affordability for a population that needs it the most," Stride CEO Noah Lang said.
Open enrollment runs from Nov. 1 to Jan. 31.
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