• June 28, 2017

Unfiltered Chat: Potential Impact of Trumpcare on Startups & Small Biz

Unfiltered Chat: Potential Impact of Trumpcare on Startups & Small Biz

Phil Beauregard and I caught up for our weekly unfiltered chat and to be honest, I wasn’t expecting to dive into this topic. Healthcare is a major talking point right now and Phil has some pretty serious ideas on how it will impact the innovation economy and what we can do about it.

Check out our conversation below and let me know if you’d like to join the chat.

What should we riff on?
10:05 am 
Healthcare would be a good one
10:05 am
I need to study up on heatlhcare, was just reading my morning newsletters but it’s only tip of iceberg
10:06 am 
But… do you think the startup and small biz world will suffer with these proposed Trump healthcare changes?
10:14 am
I tell you right now. I’m on my wife’s plan (with a child on the way) and it’s incredible. And wouldn’t know what to do if we didn’t have that. Startup hc is just ok, decent but not great. And if anything were to ever go wrong and I was prevented because of my coverage, I’d lose it.
10:15 am
In current form I have absolutely no doubt that it will 1) harm those currently working on a startup, and more definitively 2) stop potential founders from starting companies.
10:16 am
It’s a massive barrier to entry for folks with families or people trying out startup land in their 20’s (this was once me). I actually went uninsured for a few months before we had hc setup at BostInno.
10:16 am
Especially people with children, or a child on the way, the new legislation will hard stop someone dreaming of turning their innovative idea into reality. Creation will suffer. Some of the best startups have been born of necessity, but also by people who don’t have a pot to piss in or a window to throw it out of.
10:18 am
Scrappiness has always been a key component in a founder’s makeup. That’s not to say that those of means are not inherently scrappy…but I’ve seen so many more examples of those arising from poverty/slightly above the poverty level become leaders of pillar, truly innovative companies.
10:20 am
And correct, it won’t just hit founders below the waist, it’ll be the employees as well. The limits on coverage and the pre-existing condition gutting will simply leave people on “normal” plans that startups can afford to provide left in the lurch.
10:21 am
Think about it. It’s simply not feasible. Healthy people get deathly ill in the blink of an eye.
10:22 am
The fit become unfit overnight.
10:22 am
And then you’re forced into bankruptcy? Or you face DEATH? Or death of a loved one/child? Some risks just simply aren’t worth taking.
10:23 am
So similar to the pledges around ridding harassment and sexism in the venture (which is a convo for another day) what can the private sector do, what can we do? How can we ensure healthcare changes don’t destroy an industry or knock the wind out of the sails of every small business in the US?
10:23 am
There are so many good threads out there touching on personal experiences that range beyond just “opinion” and outrage. There are real personal stories about what would have happened if this proposed system was in place when they found themselves at the precipice of calamity. It’s heartbreaking to even ponder. Ken Norton, a friend, had a particularly touching thread that I think everyone should read. Link to it here: twitter.com/kennethn/status/879367091953868801
10:24 am
Fuck, that story is devastating and I couldn’t agree more with him.
10:26 am
The private sector can 1) yell at their reps until the end of time; a lesson in persistence. 2) if they are of means, use their money/power to repeal and replace those who are pushing the legislation. 3) start planning IMMEDIATELY for a contingency, namely, how do we privatize healthcare in the long run using economies of scale – maybe even a startup alliance of pooled monies that will allow for proper HC care for all employees. The key is that the power will be in the masses.
10:28 am
I personally believe that privatization is becoming more and more of an inevitability. The current system and feasible options for the distant future are unwieldy without sea change in policy, and sea change in behavior amongst all stakeholders. I just don’t see it happening.
10:29 am
But in any case, we’re kind of in between a rock and a hard place….but what’s being proposed behind closed doors is disastrous.
10:31 am
I think a coming together of startups/small biz is an interesting idea. Like you said power in the masses and I’m sure there’s change that can be made if startups mobilize and work hard to ensure legitimate coverage for their employees even through the inevitable hard times startups go through.
10:33 am
….now that I think of it there’s probably potential for a startup to address privatization of HC
10:34 am
Yeah that’s above my paygrade but I can certainly get onboard.
10:34 am
private network. many companies pool money, resources..
10:35 am
emulsify the fat cats paychecks at insurers/brokers/even hospital systems.
10:35 am
Kind of what Tri-Net is doing?
10:36 am
but alluding to your first reaction to Ken’s thread on twitter re: Riley, I’d just ask everyone to imagine what they would do, and how they would feel, if something calamitous happened to someone they were supposed to protect, or to themselves. I think if you center on that, then you just may get the stakes we’re talking about here.
10:37 am
Yeah I agree
10:38 am
Tough topic but good stuff.
10:41 am
yeah, for sure
10:41 am