Health Insurance Covering Preventive and Wellness Care for Independent Workers
Demonstrating an affordable and portable health insurance package for independent workers
Field of Work: Insurance coverage for independent workers
Problem Synopsis: Independent workers—freelancers, contingent workers, self-employed, consultants, contractors, temps and part-timers—account for some 30 percent of the nation’s workforce. Many earn too much to qualify for government-funded health insurance programs, and too little to afford private insurance coverage.
Synopsis of the Work: In 2008, Freelancers Union, launched the Freelancers Insurance Company (FIC) to provide affordable health insurance to low- and moderate-income independent workers and respond to their need for preventive and wellness care, including mental health care, nutritional counseling, chiropractic care and acupuncture.
Key Results: FIC offered five health insurance plans—three preferred provider organization options and two high-deductible options—to members of Freelancers Union in New York State, beginning in January 2009. All five plans covered a range of preventive and wellness health benefits at no or little cost to members, and FIC expanded that coverage to increased numbers of enrollees during the second year.
FIC lost $6.6 million the first year but posted a $2 million profit the second year, as it gained experience in the health insurance market. The company did so while raising premiums 11 percent the second year—while other insurers were increasing premiums for independent workers by 30–40 percent.
Pioneer Special Solicitation Project Results
Individual project results from the RWJF authorization, Pioneer Special Solicitation
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