Medical Indemnity Insurance for Gig Economy Workers

Individual and Family

Medical Indemnity Insurance for Gig Economy Workers

Published on July 24, 2018


If you’re working as a gig economy worker, unfortunately you probably won’t be getting health benefits from the company you work for. A recent NPR article states that freelancers and contract workers (including gig economy workers) are expected to surpass half of all workers within a decade.
This means a huge amount of the working population won’t be covered with employer sponsored health insurance, because current law does not deem them eligible for typical rights and benefits of traditional employees.
One possible solution to those who are going without health coverage: Medical indemnity insurance.

How could medical indemnity insurance help gig economy workers?

One huge problem in the individual health insurance market right now is that prices have skyrocketed. Between 2014 (the first full year the ACA was implemented) and 2018, average premiums on individual plans have gone from $271 to $440 a month.  With such increases in price, it might seem like the only option for gig economy health insurance is no health insurance.
Luckily, that doesn’t have to be the case. There are plenty of options out there for gig economy workers to get health coverage, and one of them is medical indemnity insurance. While this coverage is not as filled to the brim with benefits like major medical or Obamacare plans, it is affordable and can help you cover the bills for common health expenses.
In other words, medical indemnity insurance helps gig economy workers by providing an option that is affordable, even without the help of a large employer contributing to the cost.

What is medical indemnity insurance?

Medical indemnity insurance is a plan that gives you a fixed cash payout in the case of illness or injury covered by your policy.
For many, this is a great add-on to have in addition to traditional health insurance, in order to pay for out-of-pocket costs, but medical indemnity insurance can also be used as a stand-alone product for health coverage.
It’s important to keep in mind that this coverage is not the same as Obamacare plans or major medical insurance, as they don’t cover the minimum essential benefits.  Although medical indemnity insurance usually covers a limited set of health benefits, these plans are still alluring for many individuals buying their own health coverage, because of the price point.

Aside from affordability, the clarity of medical plans is convenient—you always know how much money the insurance company will be giving you. There are no percentages to work out or set costs to meet before insurance kicks in. In most cases, the cash payout will go directly to you, and you can apply it to your medical bills for covered.
Some of the benefits of medical indemnity plans for gig economy workers may include:

  • No deductible or coinsurance
  • Set benefits (you know how much money you’ll be getting for each covered service)
  • Coverage for common expenses
  • Extremely affordable rates compared to other individual health insurance options

Additionally, you might even have more flexibility with a fixed indemnity health insurance plan than you would with traditional health insurance. Some of these flexible perks include:

  • Not needing to choose a primary care doctor
  • No network—choose any doctor, healthcare professional, hospital or service provider you want

Find medical indemnity plans

If you’re a gig economy worker and have been wondering how you’re going to protect yourself from medical costs, you may want to check out medical indemnity plans. If you’re fine paying less for a plan that does not cover all the services that traditional individual health insurance plans might cover, then take a look at plans in your area now.
This article is for general information only and may not be updated after publication.

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