Freelancers Union To Sponsor Innovative New Health Care CO-OPs

When we spoke with Freelancers Union Advocacy and Policy Director Althea Erickson back in November, she told us that the organization was developing some exciting new health care options for the freelance workforce. Now, with some help from the US Department of Health and Human Services, one of those options is on its way to becoming a reality.

Starting in New York, New Jersey and Oregon, the Freelancer's Union will be sponsoring Consumer Operated and Oriented Plans. CO-OPs, as they're called, work much like other private insurance companies, but with one key difference: they don't try to turn a profit. These new plans will compete with private insurers on the open market, giving individuals and small businesses a better and more fair alternative to current offerings, which are primarily designed to benefit large corporations.

The Department of Health awarded the Freelancer's Union $340 million in low-interest loans to sponsor these three state-level CO-OPs. The union plans to begin enrollment for the plans in Fall 2013, with coverage starting in 2014. In New York it expects to enroll 100,000 people in the next seven years.

As CO-OPs are part of the Patient Protection and Affordable Care Act, the Supreme Court's upcoming decision on the act could have an effect on their future. We're staying optimistic, though, and looking forward to a health care innovation that helps the growing independent workforce.

For more info, check out the Freelancers Union's CO-OP page and FAQ.

--John Ruscher

ESSENTIAL EVENT + PROFILE // Freelancers Union's Althea Erickson Discusses The Growing Freelance Movement

A Freelancers Union subway ad

This Thursday, November 10th we're celebrating the Grand Opening of our new coworking space--and you're invited. Here's why you'll want to be in attendance:

In addition to presentations by member associates and teachers, we'll be welcoming two amazing speakers: Jessica Lawrence, Managing Director of NY Tech Meetup, and Althea Erickson, Advocacy and Policy Director for the Freelancers Union. We spoke with Erickson about the Freelancers Union and what it means to be a freelance worker in today's economy. Anyone even remotely involved with a freelance vocation should hit the jump for some vital insights.

The beginning of the Freelancers Union dates back to the 1995, when labor lawyer Sara Horowitz formed the nonprofit Working Today, which started to bring together freelance workers and establish a network of organizations to promote policies and offer benefits for independent workers in New York City. As the network and vision expanded, the Freelancers Union was born, with the aim of providing benefits, advocacy and resources to independent workers nationwide.

Today the independent workforce is larger and more important than ever. "The economy is moving in this direction," Erickson says. "In the global economy, businesses are demanding more flexible workforces, and freelancers allow them to hire specialty expertise when they need it." Erickson pointed us to a 2007 study by the NYC Comptroller that found that, since 1975, the city's self-employed have accounted for nearly two-thirds of job growth.

There's no doubt that freelancers are crucial to the economy, but without a collective voice their needs can go unheard and unaddressed. That's where the Freelancer's Union comes in. The union is probably most well-known for its benefits and insurance, which allow individual workers to get the coverage they need at group rates lower than what they could find on their own. Though that's not their only accomplishment. In 2009 they successfully lobbied to repeal of NYC's Unincorporated Business Tax, which unfairly taxed freelancers double. They've also been lobbying for the Freelancer Payment Protection Act, which would allow freelancers to submit claims for lost or unpaid wages to the Labor Board just like other workers.

The union has clearly taken substantial steps forward, but in many ways it's just the beginning. "Our work is never done, but policy-makers and business leaders are starting to understand that we are an organized constituency," Erickson says. The Freelancers Union Political Action Committee, for example, helps bring together freelancers' resources to promote issues and keep legislators accountable. The union also has some exciting ideas for the future, such as developing a medical home model, which could provide less expensive primary health care, and a credit union, which could offer products specifically tailored to freelancers.

While it may be a while before such plans can be realized, the union has also developed some valuable resources to help freelancers right now. Their Client Scorecard allows members to share their positive and negative experiences with clients. Tax resources can help sort out the piles of paperwork that comes with working independently. And their new Contract Creator helps create solid contracts between freelancers and their clients.

Erickson admits that being an independent worker isn't easy. "As a freelancer you don't just have to be an expert in the service or skill that you're providing," she says. "You also have to have expertise in marketing, tax law, incorporation. You have to be a one-man band and learn all of those skills and succeed at every one of them." But its perks are nothing to sneeze at: "The freedom, the flexibility, and being your own boss and managing your own destiny."

Come see Althea Erickson this Thursday to find out more about the Freelancers Union and the growing freelance movement. And as a little extra bonus, we've thrown in a few more of the Freelancers Union's excellent subway ad designs:

-- John Ruscher