If you’re a rideshare or delivery driver in California, good news! Under California law, you may be eligible to get up to $490 a month from your company to help pay for health insurance as part of legislation known as Proposition 22. Here, learn all about the stipend, who qualifies, and how it can affect your current coverage.

The basics

Under the California Prop 22 legislation, companies like Uber, Lyft, DoorDash, Postmates, and Instacart are required to give California drivers a health insurance stipend, which is money you can use to help pay for health insurance.

Depending on how much you drive, that stipend could be as much as $490 per month this year. Why that amount? It's set by Covered California, the state's health insurance administrator, and it’s based on the average prices of health insurance plans for this year (which means the amount can change as insurance prices fluctuate). 

What do I need to do to get the stipend?

If you drive at least 15 hours per week on average over the course of a quarter for a rideshare or delivery company and pay for your own health insurance, you're eligible to receive the stipend. The amount of the stipend depends on how many hours you drive:

• If you drive between 15 and 24 hours per week on average, you’re eligible for 50 percent of the stipend, which is $245 per month.

• If you drive 25 hours or more per week on average, you’re eligible for 100 percent of the stipend, which is $490 per month.

There are three important things to keep in mind here:

1. The number of hours you drive per week will be calculated on a quarterly basis. This means you’ll need to average at least 15 hours per week or more for the entire quarter in order to receive the stipend for that quarter.

2. These hours are based on your "engaged time," which is the time from accepting a drive to completing the drive. It does not include the time spent waiting between rides.

3. You’ll need to provide proof that you’re enrolled in a health insurance plan in order to receive the stipend.

How will I know if I'm driving enough hours to get the stipend?

The rideshare company you work with will let you know if you’re driving enough hours to qualify — they’ll provide a statement of your engaged time.

When will I get my stipend?

You’ll receive your stipend through the company you work for on a quarterly basis. Think of it like a reimbursement — the stipend will partially or fully compensate you for money you’ve already spent on your health insurance.

Do I have to use the stipend for health insurance?

Yes. However, you don’t need to use the stipend exclusively for your monthly premium — you can also use it to cover related expenses like out-of-pocket medical care.

Keep in mind that in order to continue receiving your stipend, you’ll need to provide your rideshare or delivery company with proof that you’ve personally enrolled and remained in an eligible health insurance plan, usually on a quarterly basis. For anyone who uses Stride to get health insurance, you can pull your coverage information from your Stride dashboard to submit to your rideshare or delivery company.

And remember, you can only use the stipend to pay for health insurance that you get on your own. In other words, it can't be used for health insurance from an employer, your spouse’s employer, Medi-Cal, or Medicare. Furthermore, you must enroll in a marketplace plan (more on what that is and how to get one in a moment!).

Can I still qualify for tax credits?

Yes. If you’re already insured, you can qualify for both the Proposition 22 stipend and tax credits so long as you still meet the income requirements. If you’re getting new insurance, it’s much the same: You might be eligible for tax credits in addition to receiving the Proposition 22 stipend.

What if I drive for more than one rideshare or delivery company?

As long as you meet the requirements for driving 15 or more “engaged hours” per week at each company, you can request to receive the stipend. 

How the health insurance stipend works: an example

Let’s say you enroll in a health insurance plan that costs $500 a month. If you drive more than 25 hours a week for a rideshare or delivery company, you'd be eligible to receive a stipend of $490 a month from that company. That means you’ll only be paying  $10 per month for your health insurance plan.

If you worked 15 hours per week, you’d be eligible to receive $245 per month. That means your $500 health insurance plan would only cost you $255 per month.

It’s also important to note that you’re eligible to keep the full stipend amount, even if it’s more than your monthly premium payment. This gives you additional dollars to pay for out-of-pocket health expenses. 

I qualify for the stipend. But how do I get insurance?

First things first, it’s important to know when you can get insurance. Ordinarily, you’d enroll in a plan during the annual Open Enrollment Period, which runs from Nov. 1 to Jan. 15 in most states. Luckily, though, you don’t have to wait when it comes to Proposition 22. Driving enough hours to become eligible for the stipend is what’s known as a qualifying life event, which is an experience that grants you a 60-day Special Enrollment Period during which you can get coverage. If you’re a new driver, completing your first rideshare or delivery drive also counts as a qualifying life event that makes you eligible to enroll in health insurance.

After you experience one of these qualifying life events, then what? Now it’s time to pick a stipend-eligible plan. Stride, a partner of Covered California, makes it simple to find marketplace coverage that both qualifies for the stipend and addresses your health needs. Get started below!