Leaving a steady job for start a business or work for a small business can be a 
exhilarating experience, but it can also be scary. consistent earnings, employer-sponsored training and socializing in the workplace are reasons that people hesitate to start or join new companies. Even more embarrassing for most entrepreneurs, however, is the fear of losing health insurance. Traditionally, health insurance was linked to employment and only the largest companies could afford group plans of high quality.
Recently, however, the connection was broken with the passage of the Act on the Affordable Care. The 2010 law, sometimes called Obamacare, has significantly expanded the availability and affordability of private coverage through the establishment of exchanges. These exchanges facilitate the purchase of health insurance in each state. Allowing people to buy health insurance without the help of an employer, these Obamacare markets provided a major benefit to small businesses. Specifically, they benefit small businesses as follows :.
Obamacare markets Eliminate Lock Job
For decades, potential entrepreneurs have been stuck in their old jobs, handcuffed by their own health benefits. This phenomenon has been called "job lock" or "entrepreneur lock" by many economists
Dane Stangler, vice president of research and policy at the Kauffman Foundation, explained the impact of Obamacare on this problem. "Lock Contractor has proven to be a significant barrier to potential entrepreneurs Since the Affordable Care Act that unlocks the lock of employment -. This lock entrepreneur. - An effect is to provide a boost to the spirit global business "Spangler said that the affordable care Act will facilitate the creation of 25,000 new companies each year.
exchanges Make small business employers more attractive.
Obamacare can be motivating more people to start businesses, but not all the benefits belonging to entrepreneurs. In the old days, large companies were the most attractive employers because they had the ability to provide high quality health insurance as part of their group plans. because people can now buy health insurance without relying on the help of their employers, they have more choices when it comes to selecting a job and find a career. Many people prefer to work in small businesses now have the opportunity to leave behind large companies, without the fear of losing their health insurance.
Exchanges allow small businesses to offer health benefits.
The Affordable Care Act does more than allow people to buy their own coverage. It also allows these small businesses pay premiums as a benefit to their employees. In order to stay in compliance with laws and regulations, companies must implement a formal Section 105 Plan for reimbursement of medical expenses. Using these plans, companies are allowed to reimburse employees for qualified medical expenses, including insurance premiums. Best of all, skilled repayments are not subject to income tax or tax on payroll.
By providing benefits to health, small businesses can compete with larger companies to attract and retain top-level talent.
Conclusion
regarding starting a business or work for a small business, there is plenty to be nervous about. Thank you to the recent passage of the Affordable Care Act, however, purchase quality health insurance should not be one of them. health care exchanges set up under Obamacare is here to stay and their presence is a great thing for small businesses in America. By eliminating locking employment, which makes small businesses attractive employers, and allowing duty of the premium tax refund, these markets will continue to level the playing field for small businesses.
What do you think? What questions do you have? Leave a comment or question below.
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