U.S. Rep. Mike Carey representing Ohio's 15th Congressional District | Official U.S. House headshot
U.S. Rep. Mike Carey representing Ohio's 15th Congressional District | Official U.S. House headshot
Representative Mike Carey from Ohio's 15th district is advancing legislation aimed at enhancing health benefits for independent contractors. The proposed bill, known as the Gig-Worker Health Savings Account Contribution Amendments Act, seeks to allow companies to contribute to Health Savings Accounts (HSAs) of gig workers without classifying them as full-time employees.
The legislation intends to clarify that contributions made by companies to a gig worker’s HSA do not alter their employment status. This move aims to enable businesses to provide health benefits while maintaining the flexible working conditions that many gig workers prefer.
According to a McKinsey survey, around 59 million Americans are part of the gig economy. Statista's research anticipates this number will rise, with projections indicating that 90.1 million U.S. workers will engage in independent contracting by 2028.
Currently, independent contractors face challenges in accessing similar health insurance benefits as full-time employees due to existing laws. While full-time employees can pay premiums using tax-free dollars, gig workers must use after-tax dollars for the same purpose. Although they have access to HSAs, they typically do not receive contributions from their employers akin to those provided for full-time staff.
Carey's bill is designed to address these disparities and offer a more equitable approach for businesses and independent contractors alike.
A draft of the Gig-Worker Health Savings Account Contribution Amendments Act is available for discussion.
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