Report: Reform Will Spur Entrepreneurship
One benefit of the new health insurance options and reforms in the Affordable Care Act starting in 2014 will be the positive impact on the creation of small businesses and sole proprietorships.
The new paths to health care coverage will allow more individuals to purchase their own coverage instead of having to be employed in order to receive health care insurance.
A recent report found that the Affordable Care Act is expected to produce a sharp increase in entrepreneurship next year, according to the analysis done by the Robert Wood Johnson Foundation, the Urban Institute and Georgetown University's Health Policy Institute.
The study can be found at www.rwjf.org/content/dam/farm/reports/issue_briefs/2013/rwjf406367
The number of self-employed people nationally is expected to rise by 1.5 million -- a relative increase of more than 11 percent -- as a direct result of the health care overhaul.
One major barrier to entrepreneurship in the past in the United States has been the difficulty of getting health insurance on the individual market.
A pre-existing condition or disability can make it very expensive and difficult -- if not impossible -- to purchase health insurance as an individual.
Therefore, many people remain employed in a job that is not satisfying in order to maintain health care coverage -- referred to as "job lock."
This may change.
If health care is more portable, more employees will have the freedom to change jobs, retire and or start their own businesses in the near future, according to some experts.
According to the report, in Illinois, there are currently approximately 475,000 people self-employed but there are expected to be 537,000 people self-employed after the ACA is implemented -- an increase of 62,000 newly self-employed or 13. …