Isn't it true that independent contractors are not eligible for unemployment or disability claims?
Yes that's true.
Given that, it is false that the "cost" is being picked up by others, because there is no cost here.
And given that the state is seeking retroactive reimbursement for past years, all independent contractors in the state who worked at this during this time period should be retroactively reimbursed for times of unemployment and for disability issues. Odd the state's not offering that.