Why Traditional Employee Benefits Leave Millions Behind—and How to Fix It

The Problem with the Old Way

Traditional employee benefits were built for a different time. They were designed when most people worked 9 to 5, full-time, at one company for years. That’s not how work looks now.

Today’s workforce is flexible. People switch jobs more often. They work part-time, seasonally, or on contract. Many hold more than one job to make ends meet. But the benefits system hasn’t kept up.

Only 23% of part-time workers in the U.S. have employer-sponsored health insurance, according to the Bureau of Labor Statistics. That leaves over 25 million part-time workers uncovered. Add to that gig workers, freelancers, and hourly staff, and the number is even higher.

For these workers, getting sick means losing money. It means skipping doctor visits, avoiding prescriptions, or going into debt. For employers, it means high turnover, burnout, and low productivity.

The system is broken. And fixing it doesn’t require more paperwork—it requires a new mindset.

Who’s Being Left Out?

Part-Time Workers

They make up about 17% of the workforce in the U.S. Most of them don’t qualify for health or retirement benefits through work. Some work 30+ hours but still don’t meet company rules for benefits.

Seasonal Employees

Retail, tourism, and agriculture depend on seasonal labor. But these jobs rarely offer any kind of medical coverage. Workers cycle in and out without ever getting access to care.

Gig and Contract Workers

The gig economy is growing fast. Uber drivers, freelance writers, food delivery workers—they keep things running. But almost none of them have access to employer benefits.

Low-Wage Full-Time Workers

Even full-time staff can get left behind if the cost of benefits is too high. A $200/month premium might be manageable for someone in an office job. For someone working the night shift at minimum wage, it’s impossible.

Why the System Doesn’t Work

It’s Too Rigid

Benefits packages are usually one-size-fits-all. You qualify, or you don’t. There’s no middle ground. This makes it hard for companies to adapt to a flexible workforce.

It’s Too Expensive

The average cost of employer-provided health insurance is over $7,000 per employee per year. Many small businesses simply can’t afford it. So they offer nothing.

It’s Too Complex

Health plans are full of terms most people don’t understand. Deductibles, co-pays, coinsurance—it’s confusing. If you have to read a glossary to use your plan, it’s not working.

It’s Not Portable

If you change jobs, you usually lose your benefits. For workers who switch roles often, this makes it almost impossible to build any long-term security.

How to Fix It

1. Rethink Eligibility Rules

Start by asking why certain workers are excluded. Do they work fewer hours? Are they seasonal? Are they contractors? If they’re contributing value to the company, they should have access to basic care.

Solution: Create tiered benefits. Offer something to every worker—even if it’s just basic coverage or access to low-cost care. A little goes a long way.

2. Use a No-Cost Healthcare Model

It’s possible to offer healthcare without charging employees. One example is the HealthWorX Plan, created by John Theodore Zabasky. His company structured the plan through a nonprofit that funds care for part-time and seasonal workers.

The result? Thousands of workers who used to be excluded now get regular checkups, access to prescriptions, and preventive care—all at no cost to them.

This model is scalable. It works for companies with tight budgets and large part-time staffs. And it keeps people healthy, which boosts retention and lowers absenteeism.

3. Partner with Third Parties

You don’t have to build the system alone. There are organizations that specialize in affordable care and benefits for underserved workers. Work with them to expand your reach.

Example: Use a third-party administrator (TPA) to handle benefits for your hourly workforce. They can manage enrollment, compliance, and customer service so your HR team doesn’t have to.

4. Make Benefits Portable

Workers today need benefits that move with them. If someone leaves the job or changes roles, they shouldn’t lose coverage.

Solution: Create plans that aren’t tied to job status. Give workers the option to stay enrolled, even if they switch to contract work or take a seasonal break.

5. Simplify the System

Keep benefits easy to use. Get rid of the legal jargon. Use plain language. Make sure employees can enroll and access services without needing help from HR every time.

If a worker can’t explain how their benefits work in one sentence, the plan is too complicated.

The Impact of Doing It Right

When people have access to care, they stay healthier. That means fewer missed shifts, better morale, and longer tenure. According to a report from the National Bureau of Economic Research, access to healthcare improves workplace productivity by as much as 26%.

Also, workers who feel valued are more loyal. Offering benefits—even basic ones—sends a message: we see you, and we care.

Businesses that do this win in the long run. They attract better talent. They keep teams stable. And they build a reputation as places people want to work.

Final Thoughts

The way we work has changed. But most benefits plans are stuck in the past. They were built for a world where everyone was full-time and salaried. That world is gone.

Today’s workers are more flexible. More mobile. More diverse. Benefits need to meet them where they are.

That means rethinking the rules. Lowering the cost. Making the system simple, portable, and fair. And above all, building models that include everyone—not just the people at the top.

Leaders like John Theodore Zabasky show that it’s possible. You just have to be willing to break the mold and build something that works. For everyone.