Tags: Obamacare | healthcare | startups | insurance

Obamacare Helps Create Startup Firms

By Michael Kling   |   Monday, 09 Sep 2013 08:06 AM

While many are criticizing Obamacare as a job killer, some entrepreneurs are crediting the healthcare law in helping create their startup businesses.

CNNMoney recently profiled a handful of those startups.

Some of the new outfits help businesses navigate the complicated requirements of the sprawling new law.

Editor’s Note:
Obama Donor Banned This Message (Shocking)

For example, The Benefits Expert, launched last October, educates businesses about the law and helps them enroll employees in insurance plans.

"It's an onslaught of information," Joe Fernandez, who launched the startup, told CNNMoney. "It's confusing to me, and I've been doing this a long time."

Another startup, BeneStream, helps businesses find their uninsured workers who are eligible for Medicaid and enroll them. Obamacare requires larger companies to offer its workers health insurance, but low-income workers are eligible for Medicaid. That means the startup's software will save business's money.

In addition, startup Freshbenies helps consumers meet out-of-pocket expenses by bundling services like 24/7 access to a doctor on the phone; discounts on dental, vision care and prescription medication; and access to medical billing specialists.

"If you're uninsured, the benefits of our service are obvious," co-founder Reid Rasmussen told CNNMoney. "If you already have insurance, our 24/7 call-a-doctor service can still save you time and money because it doesn't require an additional copay."

Q4intelligence, a St. Louis-based startup, retrains insurance brokers, teaching them about issues beyond healthcare, including corporate communications, employee retention and job performance.

The healthcare law is also helping existing companies expand. Already selling breast pumping bras, Pumping Essentials is taking advantage of the new requirement for insurers to cover all costs related to breastfeeding supplies. The small business will bundle supplies and educational materials and sell them to insurers.

Obamacare will help entrepreneurs in another way, Dave Hewett, president of the South Dakota Association of Healthcare Organizations, told the Sioux Falls, S.D., Argus Leader.

The law expands insurance coverage, provides consumers portability by letting them to switch from plan to plan and bans insurance exclusions due to pre-existing conditions. Those features will give potential entrepreneurs courage to start their own businesses instead of sticking with a job for insurance coverage, according to Hewett.

"It's a tremendous change for small business," he told the newspaper. "If I’m an entrepreneur, I now have a way to go shopping for myself and my employees, and all of a sudden rates cannot be adjusted for my medical condition or your medical condition. You’re covered, and they can’t cancel you. That's huge."

Editor’s Note: Obama Donor Banned This Message (Shocking)

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While many are criticizing Obamacare as a job killer, some entrepreneurs are crediting the healthcare law in helping create their startup businesses.

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