Universal health insurance and entrepreneurship

Washington Monthly has an interesting article on entrepreneurship and universal health care.  Universal health insurance, far from suppressing entrepreneurs, could be a boon to it.

The main reason for this is a phenomenon known as "job lock," a term coined during the last round of debate over universal health coverage in the early 1990s. Job lock refers to the fact that workers are often unwilling to leave a current job that provides health insurance for another position that might not, even if they would be more productive in that other position. This is because employer-provided insurance is traditionally the only reliable form of fairly priced private insurance coverage available in the U.S. The alternative is to purchase insurance in the nongroup market, where insurance prices and availability are typically not regulated, so insurance companies can drop individuals when they become ill or charge them exorbitant prices. As a result, individuals feel "locked" into less productive jobs.

Over the past fifteen years, dozens of studies have documented the detrimental impact that job lock has on the economy.