The Affordable Care Act may give new business owners a chance at starting fresh. In previous years, leaving your current 9 to 5 job may have been too difficult due to the high cost of procuring health care on your own. While it may be true that individuals have faced the highest premiums in years, there might be light at the end of the tunnel. Due to changes in legislation, NY officials have announced dramatically more affordable health insurance options.
In an article by NY Times it was explained that new rates which were approved for 2014 are 50% lower on average than previous rates available. Starting this fall, those who paid closed to $1000 dollars a month can expect to be pay closer to $300, which opens up a whole new pool of funds for you to start that new contracting business you always thought about. If you apply for federal subsidiaries, your costs could even be lower. The drops in pricing are arguably attributed to online purchasing exchanges which the laws have created. Additionally, the influx of younger adults, who originally could not afford health care, are now entering the market which, due to supply and demand, will lower rates. The science behind this is simple – younger people previously dropped out of the insurance market as prices rose which left insurers with less healthy adults which pushed prices higher due to risk.
This is big news for anyone looking to start a new contracting business. The exchanges will make it much easier for entrepreneurs to shop for various plans and receive small business tax credits under the ACA. Whether you are looking to start off big, or launch a large scale contracting corp, the health care reform has definitely made an impact on the marketplace.