Covered CA Application FAQs for App-Based Drivers

Please note that the information in this Quick Guide is accurate as of January 26, 2021, but some information is subject to change as the agencies affected by Proposition 22’s implementation work quickly to stand up the new program.

What is Proposition 22?

Proposition 22 was passed in November 2020 and requires California app-based network companies to provide health care stipends to qualifying app-based drivers, on a quarterly basis, based on certain criteria. The stipend amount is tied to the average statewide monthly premium for an individual Covered California bronze health insurance plan, depending on the number of qualifying hours driven in a calendar quarter.

Average Statewide Monthly Bronze Premium

Covered California must post the average statewide monthly premium for a bronze plan annually by September 1 (for plan year 2021, it was posted on December 31, 2020). For 2021, the average statewide monthly bronze premium is $499.

App-Based Network Companies

At the time of publication, some of the likely California app-based network companies may be:

  • Amazon Flex
  • Grubhub
  • Lyft
  • Shipt
  • Uber Eats
  • Cargomatic
  • HopSkipDrive
  • Postmates
  • Taskrabbit
  • Wingz
  • DoorDash
  • Instacart
  • Roadie
  • Uber

How Much Are Drivers Eligible to Receive?

The stipend is either 82% or 41% of the posted average statewide monthly bronze premium.

  • Drivers who average 25 or more engaged hours per week during a calendar quarter could receive the full stipend amount: $409 per month.
  • Drivers who average at least 15 engaged hours but fewer than 25 engaged hours per week during a calendar quarter could receive half of the stipend amount: $205 per month.

What Are Engaged Hours?

Engaged time is the amount of time a contract worker is actively providing a ride or delivery for the company. This is the time from when a driver accepts a rideshare or delivery request to when they complete the rideshare or delivery request. Each company is required to give its drivers a statement at least every two weeks that shows the amount of engaged time they’ve had so that the drivers can make sure they are meeting the quarterly minimums to be eligible for the stipend.

When is the Stipend Paid?

Unlike financial help through Covered California such as Advanced Premium Tax Credit (APTC) and State Subsidy, the Proposition 22 stipend will be paid by app-based network companies directly to their eligible drivers quarterly. In this way, it functions like a reimbursement for monthly premiums already paid by the consumer, although drivers are not required to use it solely for premium payments.

Stacking Financial Help

Your consumers who are app-based drivers may be eligible for APTC and/or State Subsidy in addition to being eligible to receive the Proposition 22 stipend. An app-based driver averaging at least 15 hours of engaged time per week for an entire year may be eligible for nearly $2,500 each year in stipends from their app-based network company to offset their paid premium costs; drivers averaging 25 hours or more may be eligible for nearly $5,000 a year — in addition to whatever federal and/or state financial help they may be eligible for to reduce their net monthly premiums!

Proof of Coverage

As a condition of paying the stipend to eligible app-based drivers, app-based network companies may require proof of current enrollment in qualifying coverage, submitted each quarter. A proof of coverage document is currently in production and will be available for consumers or their delegates to generate on the Account Home Page for their case. Once generated, a copy will also be stored within an enrolled consumer’s Documents and Correspondence page within CalHEERS; this document may be downloaded as a PDF for submittal to the app-based network companies. Other forms of acceptable proof of coverage include documents from the Covered California insurer, such as a health insurance card, evidence of coverage and disclosure forms, or claim forms and other documents necessary to submit claims.

Please note, the Covered California Proof of Coverage document will not be available until April 2021. In addition, it will only be available for a given quarter once that quarter has been completed (e.g., Quarter 2 will be available on 7/1, Quarter 3 will be available on 10/1, and so on).

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