Affordable Care Acts Boosts Entrepreneurialism

There are risks to starting your own business, but the ability to find affordable health coverage shouldn’t be one of them. However, the decision to stay at a job because an individual doesn’t want to lose his or her employer-sponsored health insurance is so common it has a name: “job lock.” It’s easy to understand why would-be entrepreneurs wouldn’t want to risk striking out on their own when private health insurance is often exorbitantly expensive. Health care reform to the rescue!

Beginning next year, the Affordable Care Act will provide access to high-quality, affordable health insurance through an online marketplace. Better health coverage options outside of employment will help give people the security and encouragement they need to start their own businesses.  A recent study from the Urban Institute and Georgetown University found that the ACA will help enable 1.5 million Americans set off on their own business ventures.  That includes 124,000 Texans. (This article explains the foundation for the 1.5 million people finding.)

Health care reform provisions that will lead to more robust and reasonable health coverage plans for entrepreneurs include:

  • No more discrimination against people who have preexisting conditions
  • No more premium hikes because of an individual’s health status
  • Tax credits to help reduce premium costs for low and moderate-income individuals and families
  • Expanded Medicaid in some states (so far, not Texas)
  • Insurance plans that must include essential health benefits
  • Help with the costs of deductibles and co-pays in many cases.

The infographic below provides a breakdown of the how many people in each state will be self-employed due to the ACA. Check it out and share the great news!

 Written by: Liz Moskowitz, Texans Care for Children