Instead of subsidy fights, Georgia should allow ‘portable’ benefits
The federal government is in the throes of yet another shutdown. They happen regularly enough that if it weren’t for the many thousands of federal workers now languishing on unpaid leave, it would hardly seem newsworthy. This is the nation’s 11th shutdown. The impetus for the current one is a stalemate over funding levels, particularly related to health-care subsidies.
“The subsidies were part of the original Affordable Care Act passed during the Obama administration and were enhanced during the COVID-19 pandemic to increase the amount of financial assistance […] They are set to expire at the end of the year,” ABC News reported. Republicans are poised to prune these taxpayer-funded subsidies.
This could save around $350 billion in federal spending over the next decade, but it could dramatically increase health-care costs for many Americans, including independent contractors, who do not receive insurance from their clients. While health-care is a complex topic lacking easy answers, the state Legislature can reduce health-care burdens on taxpayers and workers by allowing companies—not the government—to voluntarily help shoulder the costs.
This can, in part, be accomplished through a portable benefits system, which fundamentally changes the conventional benefits model. “Unlike traditional benefits tied to a single employer, portable benefits stay with individuals regardless of where or how they work,” according to portable benefits pioneer Stride Health. “These benefits typically include access to health, vision, and dental insurance, retirement savings, high-yield benefit savings accounts, and more.”
These hold incredible promise for self-employed independent contractors who might have numerous “gigs,” including driving for Uber, Lyft, DoorDash, etc. Under a portable benefits system, each company can voluntarily contribute funds to contractors for the sole use of funding or defraying the cost of whatever type of benefits workers elect.
So what’s holding companies back from offering portable benefits to independent contractors? A number of them would like to. It would provide a distinct advantage over their peers as they compete for talent, but there is a concern that contributing to portable benefits could be used as evidence of an employer/employee relationship. These come with a tangled web of complex and costly regulations and restrictions.
This keeps benefits like health-care out-of-reach for many. As it stands, there are around 27 million uninsured Americans—many of whom are part of the growing gig worker population. “There are currently 57 million workers participating in the American gig economy, accounting for 36 percent of the US workforce,” reports Deloitte. This doesn’t mean that they all lack access to benefits, though.
DoorDash conducted a survey of its drivers and found that most already have insurance, although the majority have it either through another job or their spouses, and many are unhappy with their plans. Meanwhile, the Federal Reserve found highly concerning numbers: “Overall, 28 percent of gig workers said that they wished they had health insurance.” This is particularly true for unmarried Americans who earn solely through gig work.
While the precise number of people who only earn their income from gigs isn’t entirely clear, DoorDash found that 16% of its drivers only make a living via gig work, and many like it that way. Gig work provides them freedom and convenience to earn when and however they wish, but they are left to purchase their own insurance, which costs on average about $477 a month. The costs could rise depending on the result of the federal shutdown.
Gig worker surveys have also found that they would love other benefits, too, including paid sick leave, retirement, etc. All told, “80.1 percent of self-employed workers want access to portable benefits,” the Mercatus Center found.
Georgia policymakers are aware of this. Gov. Brian Kemp even approved a time-limited portable benefits pilot with DoorDash. “In the No. 1 state for business,” Kemp exclaimed, “we celebrate our private sector partners who not only create good paying jobs for our people, but also take innovative approaches to expanding benefits to our growing workforce.” The pilot concluded in July 2025.
Meanwhile, other states have taken the lead on the matter. Utah, Tennessee and Alabama have all formally recognized portable benefits as a form of independent contractor compensation. Georgia can be next by passing a safe harbor portable benefits model, which will cost the state and federal government zero taxpayer dollars. It simply clarifies that companies can contribute to portable benefits accounts if they want and doing so is not evidence of an employee/employer relationship.
It is impossible to predict how the federal government’s current health-care fight will end, but it won’t be the last. Instead of being captive to constant debates about taxpayer-funded health-care subsidies, Georgia should grant private companies the freedom to evolve with the changing workforce and contribute to workers’ benefits.