Skip Navigation

Close and don't show again.

Your browser is out of date.

You may not get the full experience here on National Journal.

Please upgrade your browser to any of the following supported browsers:

Why 'Obamacare' Is Good for Entrepreneurs Why 'Obamacare' Is Good for Entrepreneurs

This ad will end in seconds
 
Close X

Not a member? Learn More »

Forget Your Password?

Don't have an account? Register »

Reveal Navigation
 

 

Health Care

Why 'Obamacare' Is Good for Entrepreneurs

A new study estimates that the health care law will allow 1.5 million Americans to leave corporate jobs and start their own businesses.

(AP Photo/Charles Dharapak)

photo of Margot Sanger-Katz
June 3, 2013

Large businesses have been grousing about new rules in the health care law that will raise their costs. But a new study highlights how the Affordable Care Act may actually be a boon to small businesses and entrepreneurs.

By guaranteeing that individuals can purchase comprehensive and affordable insurance plans, the law will allow would-be entrepreneurs to leave their corporate jobs without worrying that they could become uninsured. The study estimates that about 1.5 million more people will start their own businesses after the law’s major provisions kick in next year.

“It frees you up to make a choice that may be very difficult or impossible to make without it,” said Linda Blumberg, a senior fellow at the Urban Institute, and one of the paper’s authors.

 

The paper examines two studies that compared people with easy access to individual health insurance to those without it—one observed a spike in small-business formation in the month people became 65 and became eligible for Medicare; the other looked at what happened when New Jersey overhauled its insurance-regulation system to expand access to individual health plans. In both cases, those who could easily get their own coverage were more likely to start their own businesses. (A similar trend holds for people who have access to employer-based insurance through a spouse.)

The research echoes the views of small-business leaders in Massachusetts, which enacted its own health care law years ago. Since the commonwealth set up insurance regulations and a regulated marketplace for individuals to buy health plans, it has seen its economy grow and become an increasingly attractive base for start-ups, investors and business groups say.

“People can’t live on just a vision; they need health insurance,” Laura Fitton, who founded the social-media company Oneforty, told National Journal last year, in a story on post-health-reform entrepreneurship in the Bay State “I absolutely was able to get better people.”

LIKE THIS STORY? Sign up for Health Care Edge

Get your daily dose of National Journal's health care coverage.

Sign up form for Health Care Edge
Job Board
Search Jobs
Digital and Content Manager, E4C
American Society of Civil Engineers | New York, NY
PRODUCT REVIEW ENGINEER
American Society of Civil Engineers | CA
Neighborhood Traffic Safety Services Intern
American Society of Civil Engineers | Bellevue, WA
United Technologies Research Fellow
American Society of Civil Engineers | New York, NY
Process Engineering Co-op
American Society of Civil Engineers | Conshohocken, PA
Electrical Engineer Co-op
American Society of Civil Engineers | Findlay, OH
Application Engineer/Developer INTERN - Complex Fluids
American Society of Civil Engineers | Brisbane, CA
Application Engineer - Internships CAE/CFD Metro Detroit
American Society of Civil Engineers | Livonia, MI
Chief Geoscientist
American Society of Civil Engineers
Application Engineer - Internships CAE/CFD Metro Boston
American Society of Civil Engineers | Burlington, MA
Professional Development Program Engineer
American Society of Civil Engineers | Farmington Hills, MI
Civil Enginering Intern - Water/Wastewater/Site-Development
American Society of Civil Engineers | Sacramento, CA
Staff Accountant
American Society of Civil Engineers | Englewood, CO
Biomedical Service Internship Position
American Society of Civil Engineers | Flint, MI
 
Comments
comments powered by Disqus