What it means for entrepreneurs

On March 23, 2010, President Barack Obama signed the following agreement: Patient Protection and Affordable Care Act; There is often a law in place called the Affordable Care Act (ACA). This subsequently expanded health insurance coverage to tens of millions of Americans, including small business owners, their employees, and their families.

A record 21.3 million Americans now have health insurance coverage thanks to the ACA Health Insurance Marketplace. Entrepreneurs now have additional options that were not available 14 years ago, benefiting them in many ways. Here are five.

1. Freedom to pursue entrepreneurship

Before the ACA was enacted, fear of losing health insurance from an employer was a barrier for people who wanted to start their own businesses. If you have a great idea and want to pursue your dream of opening a small business, you no longer need to worry about where to get health insurance. Individuals can now visit HealthCare.gov or state-based marketplaces to find an affordable plan that allows them to start their business knowing they will be covered without exceptions for pre-existing conditions or lifetime coverage limits. Masu.

2. Diverse coverage options

While there is still much work to be done in the marketplace to provide choice for small business employers, there are many more plans available to small business owners to obtain and provide insurance to their employees. The Small Business Health Options Program (SHOP) provides options for small employers who want to offer insurance to their employees. In addition, the program also provides calculators for full-time equivalent employees, small business health care tax credits, and minimum participation rates to determine if you qualify for SHOP.

3. Recruitment of human resources

Small business owners often face challenges in providing affordable health insurance for their employees, as well as in obtaining health insurance for their companies, and in competing with larger companies in recruiting talent. was difficult. The ACA leveled the playing field by giving small businesses and startups an option to increase their competitiveness with the ability to provide health care benefits to employees through the Health Insurance Marketplace.

“Small business owners and the self-employed make up a significant portion of marketplace enrollments among working-age adults, accounting for 25 percent of enrollments,” said Roberts, president of Susquehanna Glass in Columbia, Pennsylvania, and said Walt Loewen, Small Business Co-Chairman. He spoke about “America’s future” in written testimony before the House Ways and Means Committee’s health subcommittee last year. “Furthermore, implementation of the ACA significantly reduced the uninsured rate among self-employed adults ages 21 to 64.”

4. Increased subsidies to offset health insurance premiums

The American Rescue Plan expanded the ACA tax credit, which reduces monthly premium expenses, making health insurance on the ACA Marketplace more affordable for millions of Americans. The Inflation Control Act would also extend it through 2025, potentially helping employees at small businesses in tough times. market. The Centers for Medicare and Medicaid Services estimates that 4 in 5 of HealthCare.gov’s customers will receive medical care for less than $10 a month in their 2024 plan year after subsidies, thanks to the Inflation Control Act. I was able to find insurance.

5. No “family problems”

In 2022, President Biden issued an executive order strengthening the ACA by fixing the so-called “family defect” loophole. Under the ACA, people without access to “affordable” health insurance are eligible for premium credits to purchase affordable, high-quality insurance through HealthCare.gov or state marketplaces. Prior to this order, employer-based health insurance was defined as “affordable” if it met the criteria for an individual plan covering employees, but the same applies for coverage for additional family members. Since no requirements were in place, the family was not subject to the tax. credit. Federal rule changes to fix this “family glitch” that go into effect in 2023 will make family members of employees who purchase insurance through their employer eligible for financial assistance when purchasing insurance through the ACA Marketplaces. It will increase further.

In the past three years, an unprecedented number of new small businesses have been launched. There are many reasons for this growth, but one can speculate that the freedom and security provided by the ACA was the reason.