Thanks to the Affordable Care Act, Arkansas is poised to reach the “finish line” in covering kids and families. Because the state legislature passed a “Private Option” to implement the Affordable Care Act’s Medicaid Expansion, uninsured Arkansans will be able to find affordable health insurance in January 2014 no matter their income. Two recent analyses highlight the wide-ranging impact of the Affordable Care Act in Arkansas.

The first is a fact sheet from the Center on Budget and Policy Priorities that examines the benefits to rural America of making sure lower-income earners have health coverage.  Rural residents are more likely to be uninsured than urban residents.  According to the paper, states like Arkansas that are strengthening their Medicaid program to cover uninsured, low-income adults will help address some of the health disparities rural communities face.  For example:

• Rural employers are less likely to provide insurance to their workers. The Private Option gives workers access to affordable coverage and also allows self-employed workers in agriculture or retail to access health insurance plans that meet their needs.
• Medicaid is the “backbone” of rural American’s health care system, with rural physicians receiving 20 percent of their income from Medicaid. The Private Option will make sure rural clinics and hospitals have the economic stability they need to serve their communities and provide local jobs.

The second paper, from the Urban Institute, examines entrepreneurship and self-employment increases thanks to the availability of affordable health coverage.  Health coverage is one reason men and women can decide against starting a business. Thanks to the ACA, families can find affordable coverage while getting a new business off the ground.

• The analysis shows that Arkansas will have one of the higher rates in the nation of increased entrepreneurship, with a 13 percent increase in self-employment after the Affordable Care Act is implemented. This is above the national average of an 11 percent increase.

These two papers highlight some of the business benefits of the Affordable Care Act.  Stay tuned for more as we head toward open enrollment starting October 1!