Affordable Care Act Will Promote Small Business Growth

One of the intended benefits of the Affordable Care Act (ACA), is to enable would-be entrepreneurs to start their own businesses. Many people would like to get out on their own and start their own business but won't because they remain with their current employer because they have health benefits. This phenomenon is called "job lock."

Until the ACA was enacted, the cost of obtaining health insurance on your own or with a small business is very expensive. But with the start up of the health insurance exchanges beginning in January 2014, the hope is that a more competitive market for health insurance will be created and individuals and small business will have increased opportunities to obtain quality but affordable health insurance.

In addition under the ACA right now, small business with 25 full time equivalent employees or less can receive a 35% tax credit for offering health insurance and this will go up to 50% in January 2014. 

According to the Kauffman-RAND Institute for Entrepreneurship Public Policy, the Affordable Care Act could increase the number of US businesses by 33% over the next several years.

The Wall Street Journal does a nice job explaining "job lock" and how the ACA could enable people to start their own business and follow their dreams. Click here for the article.   

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commented 2013-11-24 09:47:09 -0500 · Flag
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Affordable Care Act Will Support Small Business Growth
Health Care for Michigan
To promote health care reform and renewable energy.