Obamacare is good for startups!

Startups are small businesses. We pay horrible rates for health insurance. I was ways shocked at my last company Peek how much more we paid than McKinsey used to pay for me.

Obamacare’s rates are out an they are super low! One part rate aggregation, one part competition, this is excellent news.

But there is a second factor: with rates and plans more standardized across geographies, with all the BS lockouts limited by the fluid “just buy it online” program, and with prices made lower — it is easier for startups to recruit great people.

Some great people are senior, earn most of their households income, and provide the health insurance. If you earn 12k/month the prospect of losing your job because you jumped to a bad startup is a big hole. But worse: you then have to go pay monthly $1500-2000 for insurance, cash out of pocket just to be covered. And you can’t skip — because of the pre-existing conditions trap.

That was before. NOW you can buy a cheap high deductible plan for $400/month, cover everyone, and just move between consulting and startup and other gigs without stressing about benefits.

Back in high school we did a huge research assignment back during the Clinton health care wars. We talked about a “mobile and flexible workforce”.

Years later I know what inhibits a big chunk of the workforce. Health care. And Obamacare looks like it it going to uncork this thing!

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