A 1099 workforce can't join your group health plan the way W-2 employees can, but that doesn't mean you can't help them get covered. Here's how the two paths compare.
The right approach depends on how each part of your workforce is classified. Here's how the two paths differ in practice.
Eligible for your traditional group health plan. You share premiums directly and everyone enrolls under one policy.
Best fit: staff on payroll, subject to employer withholding.
Generally cannot join your group plan without creating misclassification risk. Supported instead through a stipend or guided individual enrollment.
Best fit: independent contractors who invoice for their work.
Contractors with stable coverage stick around. Helping them solve health insurance is one of the cheapest loyalty investments a contractor-driven business can make.
Generally no. Group health plans are designed for W-2 employees, and adding contractors can create misclassification risk. Instead, employers typically support contractor coverage through a stipend, guided individual enrollment, or a similar arrangement outside the group plan.
A flat monthly stipend that contractors put toward their own individual or Marketplace plan is the simplest approach. It's predictable for your budget and gives contractors flexibility to choose coverage that fits their needs.
Most hybrid teams run a traditional group plan for W-2 staff and a separate stipend or guided-enrollment approach for contractors. This keeps each group on the coverage path suited to their employment classification.
Tell us your workforce mix and we'll help you design the right coverage path for each group.