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Health Insurance for App-Based Drivers

Information about Proposition 22 health insurance stipends for app-based drivers including Uber, Lyft, DoorDash, Instacart, and more.

$409/month

82% stipend for 25+ engaged hours/week

$205/month

41% stipend for 15-24 engaged hours/week

Quarterly

Payments made every 3 months

What is Proposition 22 and how does it help drivers?

Proposition 22, passed by California voters in November 2020, classifies app-based drivers as independent contractors while providing certain benefits typically associated with employment, including health insurance stipends.

Key Benefits for Drivers

  • Health Insurance Stipends: Quarterly payments to help cover health insurance costs
  • Guaranteed Earnings: 120% of minimum wage for engaged time
  • Accident Insurance: Coverage for injuries while driving
  • Flexibility: Maintain independent contractor status

Participating Companies

  • Uber (rideshare & delivery)
  • Lyft
  • DoorDash
  • Instacart
  • Postmates
  • Shipt
  • Amazon Flex
  • Other qualifying platforms

What are "engaged hours" and how are they calculated?

Engaged hours are the time you spend actively working on the platform, from accepting a request to completing the delivery or ride. This is different from the total time you're logged into the app.

Counts as Engaged Time
  • Driving to pick up a passenger
  • Waiting for passenger at pickup
  • Driving passenger to destination
  • Picking up food order
  • Delivering to customer
  • Active delivery time
NOT Engaged Time
  • Waiting for ride requests
  • Being online but not on a trip
  • Driving back after drop-off
  • Break time between deliveries
  • Declining requests
  • App running in background

How much is the health insurance stipend?

The stipend amount is based on the average statewide Covered California Bronze premium and your average weekly engaged hours during the quarter.

Engaged Hours/Week Stipend Percentage Monthly Amount (2025) Quarterly Payment
25+ hours 82% of ACA contribution $409 $1,227
15-24 hours 41% of ACA contribution $205 $615
Less than 15 hours Not eligible $0 $0

Important Notes

  • Stipend amounts are adjusted annually based on average Bronze plan costs
  • You must maintain qualifying hours for the entire quarter
  • Hours are averaged across all app-based platforms you work for
  • Payments are made directly to you, not the insurance company

How do I qualify for the Prop 22 health insurance stipend?

To receive the quarterly health insurance stipend, you must meet ALL of the following requirements:

Average at least 15 engaged hours per week during the calendar quarter across all qualifying platforms.

  • 15-24 hours/week = 41% stipend
  • 25+ hours/week = 82% stipend

Be enrolled in a qualifying health plan:

  • Covered California: Bronze tier or higher
  • Private Insurance: Must meet minimum essential coverage standards
  • Employer Plan: From spouse/partner (your own employer coverage disqualifies you)

Not Qualifying: Medi-Cal, Medicare, VA benefits, catastrophic plans

You cannot have affordable employer-sponsored insurance available from another job.

  • Part-time W2 job without benefits: ✅ Still eligible
  • Full-time job with health insurance: ❌ Not eligible
  • Spouse's employer plan: ✅ Still eligible

Provide documentation showing continuous coverage during the quarter:

  • Insurance ID card
  • Coverage letter from insurance company
  • Premium payment receipts
  • 1095-A form (for Covered California)

What's the enrollment and payment process?

The process for receiving your Prop 22 health insurance stipend follows a quarterly cycle:

 
 
1
 
 

Work Your Hours

Complete engaged hours throughout the quarter (Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec)

 
 
2
 
 

Receive Notification

Get email/app notification about eligibility (usually 2-3 weeks after quarter ends)

 
 
3
 
 

Submit Proof

Upload proof of health insurance coverage through the app platform (15-day deadline)

 
 
4
 
 

Get Paid

Receive stipend via direct deposit or debit card (within 15 days of submission)

What are the best health insurance plans for app-based drivers?

The best plan depends on your income, health needs, and whether you qualify for additional subsidies through Covered California.

Best Value: Enhanced Silver Plans

If your income is below 250% FPL:

  • Lower deductibles than Bronze/Gold
  • Cost-sharing reductions available
  • Better coverage for less money
  • Qualifies for Prop 22 stipend

Example: Single person earning under $36,450/year

Budget Option: Bronze Plans

If you're healthy and want lowest premiums:

  • Lowest monthly premiums
  • High deductible ($7,000+)
  • Free preventive care
  • Qualifies for Prop 22 stipend

Best for: Young, healthy drivers who rarely need medical care

Popular Insurance Companies for Drivers

  • Kaiser Permanente: All-in-one HMO system
  • Blue Shield: Large PPO network
  • Health Net: Affordable HMO options
  • Anthem: Wide provider network
  • Molina: Low-cost plans
  • Oscar: Tech-friendly features
  • LA Care: LA County residents
  • Sharp: San Diego area
  • Valley Health: Santa Clara County

Maximizing Your Benefits

Example for a driver earning $30,000/year:

  • Covered CA Silver plan premium: $150/month
  • Premium tax credit: -$100/month
  • Your cost: $50/month
  • Prop 22 stipend (25+ hours): +$409/month
  • Net benefit: +$359/month in your pocket!