Affordable Care Act is the “best thing Washington has done” for small businesses
Small business owners are poised to benefit greatly from the Affordable Care Act, according to an overview of the federal law by The New Yorker. While health care reform requires companies to offer health insurance, that provision does not affect 96 percent of American businesses that have fewer than 50 workers. But small companies that choose to offer health coverage to their employees will pay lower premiums due to federal tax credits and new rules that restricts the ability of insurers to charge more money to companies with older, sicker workers. Perhaps most importantly, health reform is likely to end the phenomenon of “job lock” – where people stay in a job just for the health benefits — which can be a big barrier to starting a business or being self-employed.

Unfortunately, the law doesn’t cover all small business owners and entrepreneurs. One major gap that exists in states like Louisiana is the failure to expand Medicaid. This is a problem because many small businesses and start-ups may make very little income in their first few years. LBP estimated last year there are currently around 19,500 “self employed” people in Louisiana who would be eligible for Medicaid expansion — a number that would surely grow if people were able to retain their health security when they took a chance on opening a business.

Red states vs. blue: a detailed look at Medicaid eligibility levels
Following a New York Times article that details how millions of poor are left uncovered by the Affordable Care Act because they live in states largely controlled by Republicans who have declined to participate in a vast expansion of Medicaid, The American Prospect created a state-by-state chart that lays out differences in Medicaid eligibility between red and blue states across the country in 2013. “The bars in red are the states that have rejected the Medicaid expansion, and as you can see, almost all of them are clustered at the lowest end of the eligibility spectrum,” Paul Waldman writes. “That means that the states where the Medicaid expansion would have done the most good for the most people are precisely those states where Republican governors and legislatures have told their poor citizens that they’re out of luck.” The Medicaid eligibility level for a family of three with at least one worker in Louisiana is $4,699, the second lowest in the nation. Minnesota is the greatest at $41,990.

More evidence that education and skills = jobs and economic growth
It’s no secret that American children are being outpaced by their international peers in science, math and literacy. But it turns out that adults in the United States aren’t doing so hot either, scoring well below their peers in other countries on tests of basic math, literacy and technology skills. Americans ranked 16^th of 23 countries in literacy proficiency, 21^st in numeracy and 14^th in problem solving in technology-rich environments, according to a survey by the Organization for Economic Cooperation and Development. The study found that older Americans, those in the Baby Boom generation, were largely able to hold their own against their international peers. But younger workers in America lag well behind their counterparts in countries such as Canada, Japan and Korea — a bad sign for U.S. economic competitiveness in the years to come.

Government shutdown harms small businesses and National Guard
As the government shutdown enters its second week, the impacts of the spending freezes are beginning to take a toll on small business owners, entrepreneurs and National Guardsman. The Washington Post writes, “Small business owners and entrepreneurs from around the country have started to feel the ripple effects of the closure — some left waiting for contract updates, some left waiting for loans, and some left waiting to see whether customers are going to keep walking through their doors.” Meanwhile, Stateline by PEW reports National Guards are also experiencing pains of the shutdown. “Most National Guard members are part-time, and hold regular civilian jobs. However, they are paid to train one weekend each month and two weeks each year, in case they are ever called for domestic emergencies or active duty military service. Those whose training exercises have been canceled will not get paid, even though they have not been furloughed.” Nearly 875 Louisiana National Guardsman are furloughed due to the government shutdown.

Correction
Monday’s Number of the Day stating that 0 health insurance plans in Louisiana cover maternity is for the pre-ACA individual market. Under the ACA, all plans sold in the online marketplace are required to cover maternity as an “essential benefit.”