DC Circuit Court of Appeals Decision Could Discourage Entrepreneurs

The DC Circuit Court of Appeal̢??‰?s decision today declaring the Affordable Care Act does not allow consumers in states with federally run health insurance marketplaces to receive federal tax credits could discourage entrepreneurialism and have adverse impacts to the economy.

The Affordable Care Act gave prospective entrepreneurs a helping hand when it eliminated a phenomenon called ̢???job lock,̢???? which occurs when a prospective entrepreneur who has a preexisting medical condition, or has a family member with a preexisting condition, cannot leave their job, launch a new company and help grow our economy because they are ̢???locked̢???? in their old job and health coverage. Now, would-be entrepreneurs can leave their job and go into business for themselves without the fear of being denied health insurance because they can find quality, affordable care through the health insurance marketplaces.

However, the subsidies are a huge part of that.

If the tax credits were available in only state-run marketplaces, this could hinder countless prospective entrepreneurs from striking out on their own, creating businesses and growing the economy.

We are pleased the 4th Circuit Court of Appeals in Richmond ruled that the tax credits are available in all states, whether the marketplaces are federally run or managed by the states.

The health insurance marketplaces are the most important component of the Affordable Care Act for entrepreneurs, and it̢??‰?s critical they are kept as robust as possible. Diminishing them in any way, including by limiting the number of consumers who could claim a tax credit, would be a blow to the economy that we can̢??‰?t afford right now.