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Uber CEO Urges 'Portable Benefits' for Gig Economy Workers (thehill.com)

An anonymous reader quotes The Hill: Uber's chief executive is calling for Washington state to develop a "portable benefits system" to give contract workers in the so-called gig economy access to health care and retirement planning accounts. Uber CEO Dara Khosrowshahi signed onto a letter with Service Employees International Union (SEIU) 775 President David Rolf and Seattle investor and workers rights advocate Nick Hanauer urging the state to take action.

Uber does not hire drivers as actual employees meaning the company does not offer them benefits beyond compensation. Khosrowshahi said having the state change laws so that contract workers can carry benefits between jobs would be preferable to Uber hiring them as full employees.

71 of 137 comments (clear)

  1. Like Obama Care by goombah99 · · Score: 1

    Wasn't that the whole point of obama care. Economic mobility even when you have a pre-existing condition.

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    1. Re:Like Obama Care by PPH · · Score: 1, Offtopic

      Yeah, right.

      Before Obama-care, I had a health insurance policy that was good state-wide. Ideally, ACA should have made that portable across the entire USA. Instead, the insurance industry was granted enough loopholes that they started breaking their policies up by county.

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    2. Re:Like Obama Care by ShanghaiBill · · Score: 1, Offtopic

      Wasn't that the whole point of obama care. Economic mobility even when you have a pre-existing condition.

      No. Obamacare is for the self-employed, not for people getting insurance through their employers.

      It was a bandaid solution applied to a broken and bleeding system that already had a pile of bandages a foot thick. A clean, sensible solution to America's healthcare system is not politically feasible. Obamacare sucks. The Republican alternative doesn't exist. So here we are.

    3. Re:Like Obama Care by twistedcubic · · Score: 2, Insightful

      This is an indication of Obamacare's shortcomings. We should have Medicare for all, and end this nonsense now.

    4. Re:Like Obama Care by alvinrod · · Score: 2, Interesting

      But the ACA was a cobbled together mess that didn't solve that problem regardless of what it was intended to do.

      Near as I can tell it was just a gift to insurance companies because it allows them to have higher overall profits, because now everyone is (theoretically) forced to buy insurance policies (which in some cases that they can't even really afford to use, but that's a side issue) which means overall revenue for the companies goes up, so even though they still pay out the required ~80% percentage of that in health care claims, they still an overall increase in the remaining ~20%. There's also an incentive to keep increasing the cost of health care as that just means that the remaining ~20% is even larger. There's some other bad behavior that's incentivized since they can't really force you to buy it, so you can get away with not doing it, which may be the best financial decision for a lot of people, especially since they can always buy the insurance only when they need to use it since presence of a pre-existing condition doesn't disqualify them from purchasing insurance now.

      I think that if that government wanted to do things sanely, they'd handle emergency room visit costs and the like since hospitals are required to treat people which creates some similarly bad incentives in terms of behavior, but that's another aside. That way if the government feels someone is abusing the ER, they can easily garnish wages or take other actions to remedy the issue. Beyond that, they should just get out of healthcare entirely. If they want to provide some kind of portable benefits, just create a basic income because sometimes people need to buy a car to get to a new job or to purchase food more than they need a guarantee of medical care. Making hospitals have a list price for treatments would probably go a long way as well, because that lets consumers make price decisions just like they do at grocery stores, retail outlets, etc.

    5. Re:Like Obama Care by MightyYar · · Score: 1

      I would have liked to see a public option as part of Obamacare. That seemed like a nice compromise, but we don't do that anymore.

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    6. Re:Like Obama Care by Hal_Porter · · Score: 1

      https://www.npr.org/2017/09/14...

      Payment is unclear. A generous plan that covers all Americans is going to require more revenue. There's no exact plan for how to pay for Sanders' bill, but he did on Wednesday afternoon release a list of potential payment options. Among the proposals: a 7.5 percent payroll tax on employers, a 4 percent individual income tax and an array of taxes on wealthier Americans, as well as corporations. In addition, Sanders' plan says the end of big health insurance-related tax expenditures, like employers' ability to deduct insurance premiums, would save trillions of dollars.

      But even with all of those potential revenue-boosters, Sanders may still fall far short of the total amount of money needed to pay for his ambitious program. Altogether, his estimates of how much money his funding mechanisms would generate totals up to around $16 trillion over 10 years. In a 2016 report on his presidential campaign's "Medicare for All" plan, the Urban Institute estimated that the plan would cost $32 trillion over 10 years.

      Right now the total US debt is $20 trillion

      https://www.treasurydirect.gov...

      So you're looking at adding another $16-$32 trillion to that over ten years depending on how overly optimistic his plan turns out to be. I'm sure that won't cause any problems, like a sovereign debt crisis for example, at all.

      After all single payer for all worked out fine in Vermont. Oh wait, not it didn't.

      https://www.politico.com/story...

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    7. Re:Like Obama Care by cats-paw · · Score: 1

      because now everyone is (theoretically) forced to buy insurance policies

      huh wut ? of course everyone is forced to buy it , it's INSURANCE.

      i still can't quite parse the word salad that is your first paragraph. so let me sum up.
      you can't have people buy insurance "when they need it". then it's not insurance. and remember that your paying into insurance when you "don't need it" precisely for others in the pool and for the day you DO need it.

      you want to not pay insurance and then pay for it when you need it ? that's not insurance, and health care requires a pool. you don't know when you'll get ill or how bad it will be. every civilized country on the planet realizes this, except the USA, because people like you keep trying to push false narratives about a how a rational health care system should work.

      Making hospitals have a list price for treatments would probably go a long way as well, because that lets consumers make price decisions just like they do at grocery stores, retail outlets, etc.
      that's sort of a rational expectation, but once again everybody thinks they can compare getting leukemia to buying eggs at the grocery store.

      jesus H christ can we please stop automatic up-voting of idiotic libertarian memes ?

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    8. Re:Like Obama Care by gtall · · Score: 2

      That's because the Republicans theorized that the public option would result in government "Death Panels". I wonder what they think the insurance companies' actuaries, accountants, and claims reviewers actually are.

    9. Re: Like Obama Care by Hal_Porter · · Score: 1

      Different health care systems have different costs. And pulling all health care into a government run health care system pushes up the debt to GDP ratio. At some level of debt to GDP ratio you get a sovereign debt crisis.

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    10. Re:Like Obama Care by pots · · Score: 1

      I think that if that government wanted to do things sanely, they'd handle emergency room visit costs and the like

      You are wrong about insurance companies profiting from the ACA. Health insurer profits, which were never extraordinarily high, are down since 2007. The most profitable sector in health care is pharmaceuticals, thanks to their sacrosanct ability to charge anything that they want for drugs, but even they can't be blamed for everything.

      The ACA is indeed a mess, but that is because our health care system is extremely extremely messy. (Before you say, "No one could have known that." just... don't. Don't say that.) If you need a single thing to blame for the increase in costs it's drugs, but blaming a single thing is not going to really get you anywhere.

    11. Re:Like Obama Care by MightyYar · · Score: 1

      The Republicans opted out of the process entirely. I think this was a huge mistake, because Obamacare could have been a market-driven way to keep healthcare costs down. They blew it. With that said, the resulting law had nothing at all to do with Republicans - the entire law rests at the feet of the Democrats.

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    12. Re:Like Obama Care by goombah99 · · Score: 1

      just state wide? loser. Did it cover pre-existing conditions? Did you get it from your employer? Did you have anyone in your family with pre-existing conditions.?

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    13. Re:Like Obama Care by liquid_schwartz · · Score: 1

      The Republicans opted out of the process entirely. I think this was a huge mistake, because Obamacare could have been a market-driven way to keep healthcare costs down. They blew it. With that said, the resulting law had nothing at all to do with Republicans - the entire law rests at the feet of the Democrats.

      To actually make health care affordable the fact that the US pays many times more for the same drugs would have to be addressed. As both D and R have been bought off don't expect that to happen.

  2. Re:Why is it a gig economy by MightyMartian · · Score: 2

    This is more about Uber fighting yet another losing fight in trying to call their employees "contractors".

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  3. Re:Why is it a gig economy by ShanghaiBill · · Score: 1

    call them part times jobs, thatâ(TM)s what they are

    Because that is not what they are. A part time job means that you are an employee with reduced hours. A "gig" means you may set your own hours, decide for yourself which days to take off, work for Uber for one fare, and then take a Lyft fare 10 minutes later, etc.

    All benefits should be portable. For everyone.

  4. Re:Why is it a gig economy by stephanruby · · Score: 1

    call them part times jobs, thatâ(TM)s what they are

    Part-time? I work between 32 and 55 hours a week driving for Lyft.

  5. Outsourcing Benefits by crow · · Score: 1

    This might be a great startup idea. Create a company that provides benefits with several standard packages. Companies could buy into a package for their employees. If an employee leaves, he could continue to pay his own portion of the package (optionally changing to a cheaper or more expensive package), but unlike Cobra, it would be the full benefits and could continue indefinitely. If starting a new job with another company that uses the same benefits company, there would be no changes in benefits.

    I could see this mostly being a mix of small businesses and contract employees, but it could also be larger companies and government agencies if the system worked well enough.

    1. Re:Outsourcing Benefits by 0100010001010011 · · Score: 1

      I'll buy in. The biggest problem with switching companies as a contractor or getting hired on through another company is dealing with benefits and making sure your family is covered.

      Someone should set up a company on paper and 'contract' out a large chunk of it. Manage my 401k and health care and let me find jobs. You take a portion off the top smaller than current companies are scamming us for and you have a hit.

    2. Re:Outsourcing Benefits by quonset · · Score: 5, Insightful

      Create a company that provides benefits with several standard packages. Companies could buy into a package for their employees.

      It already exists. It's called insurance. Uber simply doesn't want to pay for it for its employees. It wants the taxpayers to pay for it.

    3. Re:Outsourcing Benefits by apoc.famine · · Score: 1

      As an American, I'm mystified about it as well.

      Forcing the uninsured to either forgo preventive care or use the ER as their doctor costs far more than it would to just give them insurance. ER visits are generally at least 10x the cost of a regular visit, and forgoing preventative medicine costs even more than that.

      There's a damn good reason that we pay far more for health care in the US and get far less. We handle it almost as stupidly as possible with as much potential for people to profit off of other people's health and well-being as possible.

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  6. Already happened, without government, ... by perpenso · · Score: 1

    Its already happening without government intervention. For several years I've been seeing contracts where a small company's healthcare package is that one's paycheck is your pay plus your payment to an exchanged based healthcare policy.

    1. Re: Already happened, without government, ... by FuzzyDaddy2 · · Score: 1

      How much do they take out if I come in with a preexistibg condition and no current health insurance?

    2. Re: Already happened, without government, ... by AvitarX · · Score: 1

      The same, with ACA the exchange plans are the same price with or without.

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  7. Re:Why is it a gig economy by MightyMartian · · Score: 5, Insightful

    You do know that Uber is actually losing these case, because, as shocking as it may be, most taxation authorities have a set of tests to determine whether someone is an employee or an independent contractor.

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  8. Portable benefits my ass by rsilvergun · · Score: 5, Insightful

    This is about the worst thing to come out of Uber yet. Rather than support a single payer system (that they're afraid they might have to chip in for) they want 'portable' benefits. e.g. completely paid for by the (underpaid) drivers. The best part is this makes it sound like he's doing it for the little guy when all he's really doing is trying to divert attention away from the fact that his company broke one of the fundamental social contracts in America (to wit: "Work for us and we'll take care of your healthcare).

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    1. Re:Portable benefits my ass by psmoot · · Score: 1

      Portable retirement accounts are called "IRAs". They've been around for decades. Use them. IRAs and 401ks, plans owned by the employee (as opposed to traditional pensions) are wonderful things. No one but me can make a stupid decision and screw up my retirement.

      Portable health care insurance is a fabulous idea. I hate having to change my insurance plan (and possibly my doctors) every time I change jobs. If I could make a wish and change one thing about the US health financing system, it would be to remove employers from the health insurance equation.

    2. Re:Portable benefits my ass by apoc.famine · · Score: 2

      Personally, I wouldn't make that wish. I'd wish for a universal single-payer option. Medicare for all. Why? Because if an employer wants to offer a better health insurance program, they definitely should be able to as an incentive. But if they don't or can't, (or if the employee is no longer employed) the employee shouldn't be penalized with no health insurance.

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    3. Re:Portable benefits my ass by psmoot · · Score: 1

      Personally, I wouldn't make that wish. I'd wish for a universal single-payer option. Medicare for all. Why? Because if an employer wants to offer a better health insurance program, they definitely should be able to as an incentive. But if they don't or can't, (or if the employee is no longer employed) the employee shouldn't be penalized with no health insurance.

      That is a very interesting and point. I'm open to considering it but here are some issues.

      First, both participation and payment need to be optional. If I'm paying Medicare for all taxes and am entitled to the benefits, that pretty much destroys any market for private insurance (either paid directly by me or via my employer). So what I think it would need to look like is a government-sponsored enterprise. Examples of this are the Post Office, Fannie Mae, and Freddie Mac. Technically these are all independent organizations with their own profit/loss statements. Technically any could go out of business if they don't provide good value for the cost.

      They also run afoul of the moral hazard of any GSE. No one expects the federal government to let any of these three fail. Thus they can take risks a private enterprise can't. They also get pressured by politicians to do financially dumb things (and I'm mostly looking at Fannie Mae and Freddie Mac).

      At that point, if it's an either/or sort of deal, you have to ask why you expect a GSE to offer better products than any random insurance company. I don't see any reason to expect that.

      So how about a different option? Suppose our Medicare for All enterprise only offers minimal coverage? Everyone would use the service and you could supplement with additional coverage if you wanted it. I believe this is sorta how the British system works but I'm not sure. The problem is defining that level of minimal coverage. We could have talked about this in 2013 but never got that far. So, MfA could cover, say, terminal cancer treatments but not routine checkups. To an extent we have this already, in that you can go to any emergency room and get treatment for acute conditions. That's a form of catastrophic coverage for everyone. I'm actually fine with this, it's a good pragmatic system and doesn't actually cost all that much. People love to complain that poor people overuse emergency rooms but it's actually small potatoes compared to other costs.

      Problem with that is politicians are really unlikely to do the brutal calculus to come up with a minimal level of care. What politician would you expect to actually meet with a constituent with a toothache and really tell that voter they need to get their tooth pulled (for $200) instead of a $2,000 root canal and crown? You can't, it's entirely unreasonable. So politicians are always going to press for more and more coverage, again crowding out any possibility of private insurance.

      BTW, we already see this in the ACA plan definitions. I'm pretty sure there's a viable market for plans below Bronze level but the ACA regulations make it impossible to offer that.

      Anyway, I don't expect to convince you. This is a complicated topic. This is exactly what we should have been debating in 2013 but didn't because we all talked past each other.

    4. Re:Portable benefits my ass by apoc.famine · · Score: 1

      First, both participation and payment need to be optional.

      If we're going to do a universal health care offering, everyone needs to pay into that safety net, because everyone will likely need it at some point. It's like not getting life insurance until you think you're going to die. That's not how insurance works. You pay into it in case you need it. And unless your company guarantees health insurance as retirement benefit until you die, you're going to need it when you're probably at the most expensive part of your medical life, outside of maybe birth or a terrible accident. I think we'd all want everyone paying in due to that alone.

      you have to ask why you expect a GSE to offer better products than any random insurance company. I don't see any reason to expect that.

      I don't either. What I do expect is that the products will be cheaper.

      Having worked with a number of large businesses, one thing that I've learned is that the agile, efficient free market most often isn't. All of them have been plagued by inefficient processes and staff who needed to be fired, stupid bureaucratic quirks that most people wouldn't expect out of a private company, and a host of other issues that we generally associate with government inefficiency. On top of that, they still needed to make a profit, and are, in fact, required by shareholders to make an ever increasing profit.

      That is not conducive to keeping costs for the customer down. While competition should in theory offset this, it hasn't in practice. I'm personally at the point where I think we can just call the private insurance scam for what it is, and move to a demonstratively better alternate.

      There's a reason that most developed countries have equal or better care for less money. When you have organizations who need to make increasingly more money involved in health care, they find creative ways to do it. (Like bribing politicians, for one very giant example.)

      I do agree about the difficulty in setting a minimum level of care. Ideally, it should be done by a non-political, educated, non-partisan panel. In practice I suspect that what you warn of is likely to happen:

      So politicians are always going to press for more and more coverage, again crowding out any possibility of private insurance.

      I'm not sure it will crowd out the possibility of private insurance, however, for one reason. Even if it covers nearly 100% of things, people are still going to want optional or cutting edge treatments, and they're going to want them now.

      If a company can offer either more innovative or faster treatment plans, that will be attractive even if the government one offers pretty much everything. And if not, so what? That's a lot less overhead for a company to have to worry about, and there are plenty of other ways to offer benefits that will keep employees there. Like just giving them some of the money you'd have used on health insurance, for one.

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    5. Re:Portable benefits my ass by psmoot · · Score: 1

      If we're going to do a universal health care offering, everyone needs to pay into that safety net,

      I'm proposing a very different sort of system. I propose a system of equal opportunity to enter or not enter. If you want to take care of yourself, I think you should be allowed to do that. If you want to use a single-payer system, it would be nice to make that available too. Just like today my employer offers a choice between a low premium/high deductable PPO, a high premium/low deductible PPO, and an all-in-one HMO (Kaiser Permanente). I'd like to ensure people have choices so they can pick a plan which suits their needs.

      It's like not getting life insurance until you think you're going to die. That's not how insurance works.

      Yes, I understand how insurance works. Generally my fondest hope is that I'll never make a claim. That's not how we use health financing insurance today, where pretty much everyone is making claims all the time. I hestitate to call this "insurance". It's more like a financing plan. But I digress...

      I agree there is a free rider problem. I think there are ways to address it other than requiring everyone to pay into a system and take the benefits. For example, we could all pay into a system and get vouchers. We could have a system which has different premiums depending on whether the offering is allowed to take our health status and age into account. We could have offerings which cover pre-existing conditions and other offerings which do not. There's a large number of options.

      And unless your company guarantees health insurance as retirement benefit until you die, you're going to need it when you're probably at the most expensive part of your medical life...

      And this is one of the points I feel most strongly about. My health financing should not be tied to or paid via my employer. It's a goofy system, an historical accident from WW II. And I think it leads to all sorts of problems, mostly because the person getting the benefit (you and me) isn't the person directly paying the bills (my employer and the insurance company or government are intermediaries). With that indirection, there's very little direct pressure to hold down costs and improve service, and we wind up with a health care system which is expensive and less effective than it could be.

      I don't either. What I do expect is that the products will be cheaper.

      It must be nice living in your society. On Planet Pete, government agencies are routinely criticized for being inefficient, sluggish, and having poor customer service. I've worked at defense contractors and private companies too. Private companies are much more focused on controlling costs and improving products and services.

      I suspect you overestimate the amount of profit typical companies make. A pretty typical net profit is something like 6%. Walmart has a net profit of something like 2%. Apple has an outrageous net profit of something like 25%. Do you really think a government agency without a profit and loss statement will be within 6% as efficient as a private company? I don't.

      Let's look at some examples. Who would you rather deal with, FedEx or the US Post Office? A Ford dealer or the DMV? Charles Schwab (or any other bank/broker) or the IRS? A local home builder or your city zoning department? How about the company everyone loves to hate, your cable company or the municipal water district? Personally, I'll take the private enterprise every time.

      I'm not sure it will crowd out the possibility of private insurance, however, for one reason. Even if it covers nearly 100% of things, people are still going to want optional or cutting edge treatments, and they're going to want them now.

      I don't think I understand your comment. If a MfA plan covers 100% of things, why would I need new, cutting edge treatments? If they're not covered, then MfA doesn't cover 100% o

  9. Good idea by nospam007 · · Score: 2

    The rest of the world used that system for 100 years or so, it seems to work.

  10. Re:Why is it a gig economy by Khyber · · Score: 1

    http://www.oregon.gov/ODA/shar...

    Too stupid to know actual law, because you are NOT a contractor nor have you ever been a contractor, otherwise you'd know THIS EXACT LAW.

    Which is why your lying ass posted as AC.

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  11. Re: We'll take care of your healthcare. by Anonymous Coward · · Score: 1

    But the insurance company will cut you off when you get cancer, causing you to lose all of your life's savings paying for treatment and then bank will take your home so you can die penniless in the street. America, what a cuntry!

  12. Its call Universal Health Care. by pjv936 · · Score: 5, Insightful

    Most nations have it except for the USA.

    1. Re:Its call Universal Health Care. by mjwx · · Score: 1

      Most nations have it except for the USA.

      By most nations, I assume you mean most developed nations because universal or single payer health care isn't common in developing nations. However Uber isn't advocating this, Uber simply wants this to be someone elses problem.

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  13. Already done by superdave80 · · Score: 1

    Uber's chief executive is calling for Washington state to develop a "portable benefits system" to give contract workers in the so-called gig economy access to health care and retirement planning accounts.

    Anybody can already sign up for an IRA or Roth on their own. What exactly is this CEO asking for?

    1. Re:Already done by kenwd0elq · · Score: 1

      All tied up in tax considerations. Company-paid "benefits" are tax-free; if you pay for those same services on your own, you're paying with after-tax dollars.

      The "solution" is to cut taxes nationwide, and eliminate tax-advantaged health and retirement plans.

  14. Re:Why is it a gig economy by stephanruby · · Score: 1

    I can't believe that I'm defending the scum.

    But no, you were not punished for it. Uber offered you better weekly incentives if you were found to be working for Lyft. It was a way for them to undercut Lyft since they were bigger and had more funding than Lyft.

    And since Lyft usually has less drivers, it's Lyft that looks bad to potential customers when Uber gives a fare to a driver who does both Lyft and Uber.

  15. Just give them cash! by weepinganus · · Score: 2

    give contract workers in the so-called gig economy access to health care and retirement planning accounts

    How about you just give them the money and let them select and pay for their own benefits? While we're on the subject, let's do that for all the salaried workers too.

    There's no need (from first principles) for my employer to be involved with my personal health or finances in any way apart from paying me. Just give me the money you would have spent on my behalf and allow me to secure those services myself.

    Yes, I realize there is presently a discount for group insurance (or rather a penalty for individual policies), but that's only because it's expected that people will obtain their insurance through their company. If everybody arranged their personal health insurance personally, no such penalty/discount would exist.

    1. Re:Just give them cash! by omnichad · · Score: 1

      If everybody arranged their personal health insurance personally, no such penalty/discount would exist.

      Not quite true - only the sick (or more likely to be sick) would buy insurance.

  16. Dara Khosrowshahi has benefits right? by dk20 · · Score: 1

    So.. Dara Khosrowshahi probably has a fantastic benefits package, but those who "work for him" cant have one?

  17. Re:Why is it a gig economy by I'm+New+Around+Here · · Score: 1

    Do you mind giving a rough estimate for a typical week? Or for a 'great' week with a convention in town?

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  18. Re:Why is it a gig economy by I'm+New+Around+Here · · Score: 1

    By the way, I meant dollar or pay estimate. Not hours again.

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  19. Divorce Employment from Benefits! by kenwd0elq · · Score: 4, Interesting

    The idea of "benefits" being attached to your job is a holdover from the wage & price controls enacted during World War II. Unable to increase wages, factories offered non-cash benefits like health care to attract skilled workers, and later the courts ruled that these health benefits were not taxable income. In the most extreme example, a shipyard started a medical clinic to provide medical care for shipyard workers and their families. Now the shipyard is long gone, but the medical clinic has grown into its own hospital chain; Kaiser.

    Abolish all that! Allow fraternal organizations to offer medical insurance. Let everybody pay for their own insurance, and pensions, and other "fringe benefits", and you eliminate the problem of "pre-existing conditions". A young adult would choose his/her own fraternal organization such as the Kiwanis or Knights of Columbus or Masons or Odd Fellows. You could go from employer to employer, and NEVER lose your health insurance.

  20. That's not what Uber's advocating for by rsilvergun · · Score: 1

    because if it existed they'd have to pitch in tax dollars to pay for it. If it were they could jump on Bernie Sander's Medicare for All bandwagon. What they want is a system where their drivers pay for the benefits Of course, we have that now; only the drivers aren't paid well enough to afford health care on their own. This is a dodge. A distraction meant to keep single payer from happening. Nothing more.

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  21. Re:Why is it a gig economy by AvitarX · · Score: 1

    Post part time jobs want 50 hours of availability any given week (telling you what 20 you get the Thursday before).

    They also frown upon deciding you want two weeks off with 30 seconds notice.

    The gig economy is different (and better) than part time work.

    Probably not better than full time in most instances though.

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  22. They are employees by VeryFluffyBunny · · Score: 2

    Uber does not hire drivers as actual employees...

    Although Uber hires drivers as actual employees, it refuses to recognise them as such. In many countries and some states this is illegal.

    There, I fixed that for you.

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  23. Unemployment insurance by manu0601 · · Score: 1

    If Uber is honest about this, they should accept to pay for contractor unemployment insurance. And of course the more they would let unemployed, the most expensive for them it would be.

  24. Well duh by MobyDisk · · Score: 3, Interesting

    The US concept that health insurance is tied to your employer is simultaneously anti-capitalistic and anti-socialist. In this system, nobody wins. We don't do it with anything else in our society: Not your car insurance, homeowners insurance, flood insurance, liability insurance, internet, telephone, food, electricity, or anything else. "Portable" insurance isn't some crazy idea, it just means "treat insurance like every other thing in society."

    1. Re:Well duh by Zontar+The+Mindless · · Score: 1

      The US concept that health insurance is tied to your employer is simultaneously anti-capitalistic and anti-socialist. In this system, nobody wins. We don't do it with anything else in our society...

      Americans will never have anything like decent, affordable health care until this nonsense is ended. It's completely nuts. No other country in the world does this.

      --
      Il n'y a pas de Planet B.
    2. Re: Well duh by Anonymous Coward · · Score: 1

      The American system is the ONLY system in the world that works for health care insurance companies. In capitalist places, you pay cash. In socialistic ones, national insurance is part of citizenship.

      Only in America can you insert yourself as a middle man between doctor and patient and make more than the doctor does. #MAGA /s

    3. Re:Well duh by MobyDisk · · Score: 1

      How is it capitalistic? You can't choose who you buy it from, can't negotiate the cost, can't enroll any time you want, can't compare costs... I'm not seeing a single capitalistic aspect about it.

  25. Whose preference by techdolphin · · Score: 1

    "Khosrowshahi said having the state change laws so that contract workers can carry benefits between jobs would be preferable to Uber hiring them as full employees."

    I wonder whose preference this is. Perhaps the contract employees would rather be full-time employees.

  26. befor ACA the ER was the only place for some by Joe_Dragon · · Score: 2, Insightful

    befor ACA the ER was the only place for some both poor and others who where sick that they went to the only place that takes them and gives medical care with out checking if you can pay.

  27. Sounds like a tax dodge by Solandri · · Score: 1
    One of the big factors the IRS uses in determining if someone is an employee or a contractor is whether or not they receive benefits like health insurance, retirement savings, etc. If you receive such benefits, you are almost always classified as an employee.

    This determination is important because for all practical purposes, a dollar received by a contractor is worth less than a dollar received by an employee. Payroll tax rates (Social Security and Medicare) are 12.4% and 2.9% respectively (there's a ceiling of $128,400 for social security, but it doesn't affect most people).
    • If you're an employee, half of these taxes are taken out of your paycheck, half paid for by our employer. If your pay is $50k/yr, the company is actually paying $53,825 on your behalf. You just never see the extra $3,825 because it's sent straight to the IRS. After subtracting your share of the payroll taxes, your take-home paycheck for a $50k job (before income taxes) is $46,175.
    • If you're a contractor, you have to pay all of the payroll tax - both the employee's share and employer's share - as the so-called self-employment tax. Your take-home paycheck for a $50k job is then $42,350. (You also have to pay for your own business liability insurance, but that's just an extra expense for you, not a cost savings for the company.)

    The net result is that a dollar paid to a contractor is worth 7.65% less than a dollar paid to an employee, because the contractor has to pay an extra 7.65% of it to the IRS as what would otherwise be the employer's share of these payroll taxes. This is one of the big mistakes people make when they first start working for themselves. They used to be paid $70k as an employee with $10k worth of benefits. The company offers to pay them $85k as a contractor and they jump at it. Only to discover later that they now owe an extra $6500 in payroll taxes which means their net take-home pay is less than before, plus the company can now fire them at any time without termination benefits. Meanwhile the company pats themselves on the back for turning an employee who used to cost them $86.5k ($70k salary, $10k benefits, $6.5k employer's share of payroll taxes) into a $85k contractor.

    What Uber is asking for is basically a loosening up of the IRS classification guidelines, so contractors can be given benefits. That would allow them to exploit the fact that most people don't grok that contractor pay is worth 7.65% less than employee pay, and they mistakenly equate $50k as an employee with $50k as a contractor. So by doing this, Uber can appear to be paying their contractors the same as employees and even offering them benefits, when in reality they'd be paying them less than if they just bit the bullet and made them an employee.

    The situation wouldn't have arisen if the government had just been up-front and deducted all of the payroll taxes from the employee's paycheck, instead of trying to be cute and hide some of it by having the employer pay for it. But that's water under the bridge now, and the system we have today is the system we're stuck with. And one of the consequences of that system is that a dollar received by a contractor is worth less than a dollar received by an employee.

  28. This is what the SEIU wants, let them do it by JeffOwl · · Score: 1

    Increase dues to cover it, and negotiate increased hourly rates to offset the employer not paying the insurance. Let them manage the pension too. I'm sure they would be happy to take that on as well.

  29. Exploitation 101 by Zontar+The+Mindless · · Score: 2

    If you've ever wondered what a blatant attempt to privatise profits while socialising costs looks like, look no further.

    --
    Il n'y a pas de Planet B.
  30. This has been part of the GOP approach for years by LynnwoodRooster · · Score: 1

    Make PERSONAL health care expenses at ANY level fully deductible, just like they are for businesses. Right now, tax laws make it beneficial for workers to have the company pay for health insurance, and that not only screws independent/part-time workers, but it also breaks the entire concept of the consumer actually paying for what they are consuming (health care).

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  31. no you make the problem worst by aepervius · · Score: 1

    "Let everybody pay for their own insurance, and pensions, and other "fringe benefits", and you eliminate the problem of "pre-existing conditions""

    no you don't eliminate this with private insurance. They have no reason to keep people insured which have such pre existing problem. The only way to eliminate this is to have a fix sum of money to be paid by everybody thus the healthy covering the sick: in other word UHC. Whether you want it governemental, or private due to the american allergy to some words, is up to you. But at least governemental UHC is a proven conept. Private HC without U, is a broken concept as the US prove times and times again.

    --
    C. Sagan : A demon haunted world:
    http://www.amazon.com/gp/product/0345409469/
    visit randi.org
  32. So In Other Words... by ytene · · Score: 2

    ... the CEO of Uber wants to nationalize the overheads and expenses of having Gig workers [and get private tax-payers to pay for it], but wants to privatize the profits.

    My, what a complete surprise...

  33. Re:Why is it a gig economy by cas2000 · · Score: 1

    This is not "millennials" trying to rename anything.

    This is one of the many age old practices of employers trying to fuck over their workers.

    In this case, the so-called "gig economy" is just piece-work or day-labour - ripping off the workers by attempting to falsely classify employees as independent sub-contractors so that they can weasel out of the wages and conditions they're obligated to provide to employees.

    Are you an idiot sociopath indulging in some victim blaming, or a corporate shill doing a bit of paid astro-turfing?

  34. We can thank the government for the problem by kaybee · · Score: 1

    Letâ(TM)s fix it by deregulation, not more regulation. When I switch jobs there is no impact on my life insurances, homeowners insurance, and car insurance. I simply buy these on my own. But health and disability insurance are only deductible if your employer provides them which is just dumb. Employers started providing healthcare during WW2 to attract and retain employees when the government froze wages.

    1. Re:We can thank the government for the problem by sdinfoserv · · Score: 1

      another simplistic moron claims some big "government" is the "problem" to all our ills.
      BS... "the government" is owned by huge corporations that give money to ensure their pawns are elected to enact legislation that benefits big corporations... case and point: Net Neutrality.
      All the right-wingers that claim these "job killing rules" are stiffing growth.. Yet in a time with record corporate profits, some how things like clean air, clean water, child labor laws are the "job killing rules". Hardly. They simply stop the oligarchy from pillaging every last resource and prevent the United States from becoming a polluted wasteland like China.
      These rules were put in place because companies refuse to do what's right and in practice place profit over life and safety. Fire escapes for example: It was the 1911 Triangle Shirtwaist Factory fire that killed 146 people because there were no fire escapes and doors where chained shut to keep people working. https://en.wikipedia.org/wiki/...
      Because of the tragedy, we now have fire escape laws, unlocked door laws. Just like tall buildings in earth quake areas need to be earth quake resistant.
      Return to what you want and we'll return to the time of Dickens where everyone but a few are paupers. We've been there and it sucked. I'm willing to bet you're not one of the privileged....

  35. Re:Why is it a gig economy by Khyber · · Score: 1

    Idiot can't read. That "one state" is quoting Federal law directly.

    And apparently you don't know how these legal tests work, so you're still just as stupid as before.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
  36. Scum Bag by sdinfoserv · · Score: 1

    No, what this scum bag is really admitting is that his company doesn't pay livable wages, isn't about to, and wants tax payers to come to the rescue.
    Driving someone you don't know, to a place you're not going, for money, is NOT a ride share, that is the definition of a taxi. Uber is skimming money off the backs of the lowest workers and trying to call it profit. A taxi service costs more because it's a real business, with real benefits, that PAYS it employees real wages.
    Stop using uber/lyft and use a real taxi. Support workers.

  37. No, thank you. by DerekLyons · · Score: 1

    A young adult would choose his/her own fraternal organization such as the Kiwanis or Knights of Columbus or Masons or Odd Fellows.

    The only thing worse than having my health benefits tied to a job I could be fired from, would be to have them tied to a fraternal organization that might release me from being a member because my religious or political beliefs vary from theirs.

    1. Re:No, thank you. by kenwd0elq · · Score: 2

      So choose an organization with values that ARE aligned with yours - or a true "fraternal" organization that exists only for this purpose.

    2. Re:No, thank you. by DerekLyons · · Score: 1

      So choose an organization with values that ARE aligned with yours - or a true "fraternal" organization that exists only for this purpose.

      You presume one exists. You presume wrongly. (Seriously, are you that stupid?)

  38. God forbid by eggstasy · · Score: 1

    That anyone should ever have to participate in the economy, know how the game works and how to play it. Good heavens, what would we do if people were proactive and entrepreneurial instead of "i can has job gimme"?
    I was only 27 when my tiny startup rose up to $500k/year gross income. It's what happens when freelancers are competent.
    Some Uber drivers I have stumbled upon, started their own business and have already grown it to 2 or 3 cars.

  39. Re: Why is it a gig economy by brunes69 · · Score: 1

    Benefits are already "portable". There are plenty of options for self employed people to get insurance - there isn't a law against it. The problem is these plans are prohibitively expensive because they have not been negotiated by a group. If everyone could "port" their plans, then group negotiated rates would no longer work... It would result in higher prices for all...

    What these people should be looking into is plans under their local Chambers of commerce. These groups usually have group negotiated plans SPECIFICALLY designed for small businesses and self employed.