The Affordable Care Act Allows Small Businesses To Band Together To Purchase Health Insurance In Exchanges. According to the Center for American Progress: "Repeal would mean that small businesses ... would lose the ability to purchase health insurance through the reform law's 'insurance exchange' that will allow them to choose among a variety of plans that provide better coverage at lower costs than those in the current small group market." [Center for American Progress, 7/23/10]
- Health Insurance Exchanges Help Small Businesses Provide Coverage. From the Small Business Majority: "A health insurance exchange will create a pool of small businesses with up to 100 employees and the self-employed to leverage purchasing power. An exchange will enable insurers to offer lower premiums as a result of lower administrative costs and spreading risk across a larger population. Insurers will have to offer standardized benefits packages within the exchange, so competition will be based on price and quality, not benefit design. The larger pool will also dampen the annual volatility of premiums. Combined with insurance reform, the exchange will offer small business owners and the self-employed access to stable, affordable coverage year after year." [Small Business Majority, 8/12/10]
The Affordable Care Act Helps Promote Entrepreneurship By Reducing Job Lock. The Washington Post's Ezra Klein wrote: "One of the theoretical problems with our health-care system is that it discourages entrepreneurship. We get health care at a subsidized rate, with no discrimination for preexisting conditions, from our employers. But if we leave our jobs, we lose that health care. And buying our own health care is expensive, and occasionally impossible: Plans sold to individuals cost $2,000 more than equivalent plans sold to businesses, the employer subsidy (and the tax break underpinning it) vanish, and we can be turned away because of back pain that got resolved a decade ago. So a lot of people decide to stick with their employer and forgo starting that business. It's the responsible thing to do, particularly if you have a family. ... The Affordable Care Act will help solve this problem." [Washington Post, 2/25/11]
- The Affordable Care Act Prohibits Insurers From Denying Coverage To Individuals With Pre-existing Conditions. From the Center for American Progress: "Job lock arises when people, especially those with pre-existing conditions, are fearful of changing jobs and losing their health insurance coverage. The new law prohibits insurers from excluding individuals with pre-existing conditions from coverage, from refusing to cover specific health problems, or from charging these individuals more for insurance. These changes will enable individuals and families to purchase health coverage at an affordable rate, likely bringing the new rate of job lock close to zero." [Center for American Progress, 7/23/10]
Businesses With Up To 100 Workers Can Purchase Insurance Through The State-Based Health Insurance Exchanges. According to AARP: "Starting in 2014, businesses with up to 100 workers may be able to buy health insurance for their employees through state-based purchasing pools called exchanges. The exchanges will offer a range of health plans, all of which must include standard benefits, such as medical, mental health, prescription drug and rehabilitation services." [AARP, June 2010]
