Posts Tagged ‘healthcare’

Healthcare: Startups Big But Hidden Problem?

August 6, 2009

Yesterday, I posted a question on Twitter to entrepreneur and investor Manu Kumar, who recently launched his own venture firm, K9 Ventures.

The question was: How do startups provide health care coverage for their employees? Manu said venture capital firms do not provide group coverage because it is messy and risky. “Small startups end up with catastrophic coverage only,” wrote Manu. “It is a HUGE recruiting issue. One of the biggest reasons folks stay in big companies and don’t do startups is healthcare costs.”

I would love to hear from more entrepreneurs and investors about this problem–and potential solutions. You would think this is one area where the government could help small business?

Instead small businesses are being penalized by the Obama Administration’s proposals to reform healthcare.