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Conan Knoll
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Jared Thompson
jared@smallbusinessforamericasfuture.org, (260) 797-2530

As Congress Debates Social Spending Bill, National Survey Shows Small Business Owners Want Action to Combat Rising Healthcare and Prescription Drug Costs

More than 4 in 5 small business owners say rising health insurance costs have had a negative impact on their business, ranging from increased costs for consumers, to reduced benefits for employees and delayed growth of the business

Washington, D.C., November 8, 2021— As Congress debates the Biden Administration’s proposed Build Back Better Act, results from Small Business for America’s Future most recent national survey show strong support among small business owners for lowering the cost of healthcare and prescription drugs, and legislation to combat the consolidation of the healthcare system. The results from 1,032 small business owners in the survey conducted between Oct. 18 -26 showed that combating rising healthcare and drug costs is the top priority for small business owners, because those costs keep them from hiring, seizing new business opportunities and forces them to raise the price of their goods and services. Small business owners also said they are prepared to base their votes on lawmakers’ progress on the issue. 

Specifically, the survey results show:
 

• The issue of rising healthcare costs has been exacerbated by the COVID-19 pandemic. Small business owners said lowering healthcare and prescription drug costs is their top priority, with 73% saying it is important to their business.
• 83% said lawmakers’ support for Medicare negotiation of drug prices will be important to determining their vote in the 2022 midterm elections (including 58% saying it is very important)
• Small business owners want lawmakers to combat rising drug prices. A plurality of small business owners (45%) are worried that the Biden Administration and Congress will not go far enough to lower the cost of prescription drugs than are worried they will go too far (25%).

“Small business owners are the backbone of the nation's economy, driving economic growth and job creation, and we urge Congress and the administration to listen to our small business community,” said Anne Zimmerman, Co-Chair of Small Business for America’s Future. “This survey makes it clear that small business owners want bold action to combat rising health and prescription drug costs, and it should be no surprise. Addressing those costs will allow small business owners to spend more on expanding their business and rebuilding Main Street from the effects of the pandemic.” 

The survey showed that the rising healthcare costs have hurt growth for small businesses, and forced them to make tough business decisions. Overall, 83% of small business owners said rising health insurance costs had an impact on their business, including:

• 42% said it increased employee costs, deductible, or share of the premium
• 41% said it delayed growth opportunities for their business 
• 37% increased prices of services or goods to cope with rising healthcare  costs
• Nearly 1 in 3 (30%) said they have become less competitive in hiring compared with other businesses that provide health benefits
• More than a quarter (29%) of small business owners held off on hiring a new employee due to rising healthcare costs
• 1 in 4 (26%) changed or reduced health benefits for employees
• Nearly 1 in 6 (14%) reduced workforce or laid off an employee
  

Finally, small business owners were strong in their support to rein in companies in the healthcare and drug industries in order to combat rising prices:

• 81% of respondents said lowering drug prices would not hurt the industry’s ability to develop new treatments and cures, compared to only 19% who said drug companies are the engine for drug innovation and lower drug prices will lead to fewer new treatments and cures for other diseases.
• A staggering 87% of small business owners agreed with the statement "Hospitals are unfairly charging high prices leading to higher health costs, and it is necessary to regulate hospital pricing," including 61% strongly agreeing. 
• 85% of small business owners said it was important to them that federal and state governments intervene in the consolidation of the health systems, including 54% saying it was very important.

View the full survey report here.

To request an interview with Anne Zimmerman, contact Jared Thompson at (260) 797-2530 or jared@smallbusinessforamericasfuture.org.

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About Small Business for America’s Future
Small Business for America’s Future is a national coalition of small business owners and leaders working to provide small businesses a voice at every level of government. We’re committed to ensuring policymakers prioritize the nation’s 30 million small businesses to create an economy that works for them, their workers and their communities. Visit www.smallbusinessforamericasfuture.org. Follow us on Twitter and Facebook. #SmallBizAF.