Health Care Law Helps Entrepreneurs Quit Their Day Jobs

hide captionThe Affordable Care Act could encourage people to start new businesses by solving an age-old problem: job lock.

The Affordable Care Act could encourage people to start new businesses by solving an age-old problem: job lock.

The Affordable Care Act which many see creating challenges for businesses could benefit a particular group of business people: entrepreneurs.

Joshua Simonson was reluctant to give up his job at a Portland, Ore., area grocery store, New Seasons Market, which he says had provided excellent health care for him and his family. He had a pre-existing condition that has prevented him from getting insurance in the private market, but one key development helped convince him to quit and start a farm.

"One of the biggest factors was the Affordable Care Act," Simonson says, "that our family would be able to be covered by health care starting the beginning of 2014."

Now, the young entrepreneur runs a 26-acre farm near Sheridan, Ore., where chickens till through the flower beds and goats graze on the lawn. He has 3,000 egg-laying hens, whose eggs he and his partner will sell in the Portland metropolitan area. Soon, they'll add pigs and raise chickens for meat.

It had been hard to leave a job that provided health care, especially since he had trouble getting coverage in the past.

"I was ineligible for any health care. I'd been denied by five different companies because I have back problems," says Simonson, who's broken three vertebrae in his back. "Nobody wanted to cover me because of that."

Economists call what held Simonson back job lock, or entrepreneur lock.

"Entrepreneur lock has proven to be a significant barrier to potential entrepreneurs," says Dane Stangler, vice president of research and policy at the Kauffman Foundation, which promotes entrepreneurship.

Read more:

Health Care Law Helps Entrepreneurs Quit Their Day Jobs

Related Posts

Comments are closed.