The Affordable Care Act will spur entrepreneurship by giving people who would like to be self-employed the security and courage to do so, according to research recently published by the Robert Wood Johnson Foundation.
The report estimates that New Jersey will gain 26,000 entrepreneurs, above the state’s existing 304,000 self-employed workers. Nationally, the report expects that the ACA will result in an addition of 1.5 million entrepreneurs.
The reason for this, according to the study, is that health insurance is currently tied to employment, which the researchers called “job lock.” Leaving a business’s employ means leaving the guarantee of subsidized health insurance coverage through the employer for the uncertainty of non-group health, which is not only more expensive but families can be denied insurance due to preexisting conditions.
Currently, every state’s laws regulating insurance are completely different and thus the impact of the ACA should be different depending on the state.