Side Gig Workers Could Soon Be Without Medicaid: What You Need To Know
Written by
Chris Adam
Edited by
Zuri Anderson
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The so-called “One Big Beautiful Bill” created some new Medicaid eligibility reporting requirements that could potentially leave thousands of people without coverage. Gig, freelance and side hustle workers may be especially worried about how changes could impact their money and coverage.
Here’s a closer look at what changes may mean for side gig workers and how employers can help.
Many Medicaid Recipients Have Jobs
According to the Kaiser Family Foundation, 20% of Medicaid recipients work part-time and 44% work full-time jobs, yet still qualify. But under new requirements, Medicaid recipients may need to report current monthly income and may be flagged for submitting inconsistent or fluctuating income.
Potential Paperwork Crisis Looms
Per Empyrean, side gig workers often lack the consistent, documented proof of hours that Medicaid will not require. In fact, here’s why this policy shift could lead to a paperwork crisis:
- Irregular hours, irregular proof: Gig and freelance workers have unpredictable income and no standard pay stubs, making it hard to meet Medicaid’s new documentation requirements.
- Fragmented payroll data: Many use multiple apps (like Uber or DoorDash) or juggle several part-time jobs with no centralized recordkeeping.
- Employer roadblocks: Many employers, especially small businesses, don’t track hours closely for part-time staff or lack systems to produce detailed reports.
- Risk of losing coverage: Workers could lose Medicaid despite working enough hours, simply because they can’t document it.
According to Empyrean, this change could hit industries like retail, hospitality and gig platforms especially hard.
Employers May Be Able To Help
“Employers may not be legally required to offer benefits to side or gig workers, but that doesn’t mean they can’t play a meaningful role in supporting them,” said Katie Carroll, senior director of go-to-market at Empyrean. “As work becomes more fluid and hybrid employment models expand, forward-thinking organizations are already looking beyond the ‘traditional’ benefits blueprint to meet the needs of all contributors — contract or full-time, remote or on-site.”
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