The Affordable Care Act and Startups

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Carl Niedbala

COO & Co-Founder

With the recent launch of fresh government programs under the Affordable Care Act, the landscape is changing massively in the health insurance space.  We can’t help but think about what effects the new healthcare laws will have on startups.

The Past

This article makes a great argument that the recent changes will only grow the startup community.  Here’s why:

What draws people towards big corporate jobs?  Most would be willing to bet it’s the security factor.  People generally want security/consistency and will sacrifice pursuing their dreams to attain it.  And can you blame them?  Most of the workforce has a family to provide for, and the thought of not being able to do so is absolutely terrifying!

These standard jobs are “secure” because they provide health benefits, which are too expensive for most people to afford.  At least too expensive to get actual coverage.  Maybe some plans are affordable, but they’d still leave policyholders footing the bill in many situations.

Looking Forward

With the new health insurance markets, carriers can no longer discriminate in ways they used to (denial of coverage for pre-existing conditions, for example), giving access to better plans to more people.  And what does that mean for startup world?  More entrepreneurs.  Why?  Because that population of corporate employees looking for security doesn’t have to look to their corporate “sponsors” anymore.  Health benefits will be attainable for many people like never before, giving more people the courage to branch out and start their own company.

In fact, a paper written by Georgetown University’s Health Policy Institute estimates that 1.5 million people will become self-employed after the law takes full effect.  Looks like we’re going to need more co-working spaces!

If you’re curious about how the health care laws effect you and your company or about the new coverage options out there, just reach out to a member of our team by phone 646.854.1058 or email at any time to learn more. We have an amazing partner in the space that we’d love to introduce you to! (Hint: it’s our friends at Igloo Health)


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