Tech startup founders who have it all — a great idea, a pile of cash, and enthusiasm to burn — are still missing one thing. The ability to provide basic health insurance to themselves and their dependents. Its a powerful disincentive to creating jobs in an economy that desperately needs them, and forces innovators who would otherwise strike out on their own to continue sharecropping for someone else.
The United States spends far more on health care than other developed nations, yet has significantly worse outcomes, says a just-released report from the OECD. That’s the dumbfounding irony of the innovators dilemma, health care edition. Our system is so broken that even having enough money set aside to launch a new venture is no guarantee you’ll be among those who can afford private health insurance.
In some states, there is a solution. In New York, for example, it takes as few as two employees in a startup to form a group, which can then get discount rates from existing health insurers. Those insurers are not allowed to discriminate based on pre-existing conditions.
This is indeed one of the weakest links for US, but it starts from a CICE of trust too much on institutionalized healthcare, taking things for granted, an abuse and ripoff of the system by institutions and individuals.