The health care law is also helping to end what could be called “entrepreneurship lock.” Simply put: prior to the ACA a person with a pre-existing condition who wanted to start her own business often had to choose between the security of employer-provided coverage or face potential discrimination in the individual market. Two business partners who wanted to leave their company to turn a new idea into a new job-creating business could be forced to shelve their entrepreneurial dream because a family member had a preexisting condition and could face sky-high rates or being shut out completely from finding insurance. Today, there is strong evidence that when affordable healthcare isn’t exclusively tied to employment, in more instances people choose to start their own companies. Now, countless Americans will have the security of affordable, quality coverage so they can focus on starting America’s next great business.
Editor’s note: if access to health insurance stimulates entrepreneurship, shouldn’t Europe be outpacing the U.S. by a considerable margin in entrepreneurial activity? I’m not aware of strong evidence that’s true: this study suggests the opposite. http://capitalism.columbia.edu/files/ccs/CCSWP9_FrydmanKhanRapaczynski.pdf