Gig workers and the dental benefits problem
Jessica Levco
February 25, 2025
The rise in gig workers creates a big issue around employment benefits. The system doesn’t work well in a gig economy.
Over the past decade, there has been a huge rise in gig work, where people provide services for "platform companies" that hire them as independent contractors instead of employees.
This change has many effects on workers and society as a whole. One big issue is employment benefits. For most Americans, job-based benefits help cover medical and dental costs, lost wages due to illness, injury, or unemployment and provide income in retirement. However, this system doesn’t work well for gig workers.
Gig workers enjoy the freedom to set their hours and work for multiple companies. But this makes it harder to decide who should get employment benefits, including employee dental plans, and how to provide them to workers who don’t have just one employer.
At Altogether Dental, we believe everyone should have access to affordable and quality dental care. This includes full-time, part-time, seasonal, contractor, and gig workers. We give members discounts of 15-50% on all dental procedures. They do not have to worry about waiting periods, deductibles, or claims.
Our partnership with the Aetna Dental Access Network gives members access to 260,000+ general and specialty dentists nationwide.
The Growing Gig Economy and Its Impact on Employment Benefits
According to Forbes, the gig economy is here for good. It reports that 36% of U.S. workers fall into that category either through full or part-time work. This number is predicted to reach more than half the U.S. workforce by 2027.
A study by the Pew Research Center found that 46% of U.S. gig workers are unhappy with how their companies handle benefits. And though these workers have flexible schedules and an often unlimited ability to earn wages, they do not have medical or dental benefits, Brookings says.
Brookings offers two possible solutions:
One option is to reclassify gig workers as traditional employees, as some states, like California with AB 5, have tried to do.
The second solution is to create a new system that helps gig workers with income and health security.
Challenges Faced by Gig Workers in Accessing Dental Benefits
For over 70 years, most U.S. workers received benefits through their employers. This system started after World War II when the government put limits on wages and prices but not on employee benefits, Brookings says. Employers offered workers stable, long-term jobs with good wages and benefits.
However, these benefits have become less generous. Brookings says that the percentage of workers with employer-sponsored health insurance dropped from 66% in 2001 to about 60% in 2021. Retirement benefits are also limited — only 56% of workers take part in an employer-sponsored retirement plan.
According to Forbes, U.S. gig workers are considered independent contractors, which means they only receive benefits in certain situations.
Reclassifying gig workers as regular employees wouldn’t fully solve the problem, because many benefits require steady, long-term employment. One option for gig workers is similar to small business employee benefits: employee discount programs.
Employee discount programs like Altogether Dental offer employee dental plans for gig workers. Instead of traditional dental insurance, members pay a monthly fee to get discounts of 15-50% on dental procedures at participating dentists. Employee dental plans help workers save money on routine services like cleanings as well as fillings, crowns and more.
Emerging Solutions for Dental Coverage in the Gig Economy
Employee dental savings plans can be paid by gig workers or their employers using easy payroll integration systems. Altogether Dental offers easy and convenient coverage for $7.50 a month. This coverage includes no waiting period, no deductible, no limits or exclusions and discounts on services. It’s not traditional dental insurance, which has limits and service caps.
This new way of dental care helps gig workers who struggle to find affordable health services. With a monthly fee, they can plan their expenses better and avoid surprise costs. They can also include family members to their plan.
Moreover, the absence of waiting periods means that members can start using their benefits immediately. This is a significant advantage for those who may need urgent dental work or routine check-ups. The simple structure of these plans removes the confusion found in traditional insurance policies. This makes it easier for people to understand what they are paying for and what they can expect in return.
As the gig economy grows, solutions like Altogether Dental are making healthcare more accessible and flexible. By focusing on the unique needs of gig workers, these plans are helping to create a healthier workforce, one smile at a time.
Legislative Developments Affecting Gig Workers' Benefits
In July 2024, the California Supreme Court upheld Proposition 22, allowing companies like Uber and Lyft to keep classifying their drivers as independent contractors instead of full employees. This decision means gig companies can continue their current system while still offering some benefits, like healthcare subsidies and minimum earnings guarantees.
Practical Steps for Gig Workers to Secure Dental Benefits
The rise of remote work, the gig economy, and shifting employee expectations are all influencing employer health benefits. Companies that adjust their benefits to meet these changing needs will have a better chance of attracting and keeping top talent.
The key is not just to offer great benefits but to provide ones that truly matter to employees.
