If you are an app-based driver in California, you are most likely receiving a healthcare stipend from your network company. This is all thanks to Proposition 22, passed in November 2020.
What is Proposition 22?
Proposition 22 requires app-based network companies (Uber, Lyft, etc.) to pay a health care stipend to drivers every quarter. This stipend will be 82% or 41% of the average statewide monthly bronze premium. Drivers engaged on average 25 hours or more per week will receive 82% of the premium value, while drivers engaged between 15 and 25 hours per week will receive 41% of the premium value.
How much will my stipend be?
For 2023, the average statewide monthly bronze premium is $555. If you are in the 82% stipend tier, you will receive a stipend of $455 per month from your network company. If you are in the 41% stipend tier, you will receive a stipend of $228 per month.
But wait, there's more!
If you are an app-based driver receiving a stipend, you still may be eligible for Advanced Premium Tax Credits (APTC). The tax credits will help reduce your premiums' cost, even if you receive an app-driver stipend from your network company.
Xiggit is here to help you get the best value for your dollar
You must purchase a qualified plan through Covered California to qualify for the app-based driver stipend and the Premium Tax Credits. The team at Xiggit can help walk you through the options and help you understand what you qualify for. Contact us for more information.