Health care holding entrepreneurs back?

Posted by: John Tozzi on June 24, 2008

In response to an earlier story on Gen X’s disillusionment with corporate jobs, Karyn writes:

I think a potential change in healthcare plans could cause a MAJOR exodus from the corporate world. I know many folks who literally stay in their jobs because either themselves or a family member has a health issue that they would not be able to get coverage for on their own.

I think this is a sleeper issue in the health care debate. If health insurance becomes affordable outside of the employer-based system, would it open the floodgates for would-be entrepreneurs who are only holding on to corporate jobs to keep their coverage?

Such a change could also level the recruiting field for small companies. If health insurance isn’t tied to employers, a big factor that tilts many job candidates toward larger companies (with better benefits plans) disappears. (If I’m torn between working at the exciting startup or the buttoned-up Fortune 500 company, the calculation may be different if I no longer need to depend on employer-based health coverage.)

Of course, this all supposes some substantial health care reform, which is a big if.

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What's it like to run your own company today? Entrepreneurs face multiple hurdles new and old, from raising capital and managing employees to keeping up with technology and competing in a global marketplace. In this blog, the Small Business channel's John Tozzi and Nick Leiber discuss the news, trends, and ideas that matter to small business owners. Follow them on Twitter @newentrepreneur.

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