High drug prices force small businesses to increase costs and lower wages.

The rising cost of prescription drug prices is crushing small businesses. Nearly one in three small businesses currently providing health benefits to their workers have considered ending their sponsored coverage largely as a result of rising health care costs. 93 percent of small business owners believe the prescription drug market needs to undergo changes, with 66 percent calling for a major overhaul.

Small businesses are forced to pass along the increased costs of providing coverage to customers and workers. Many small businesses report wanting to “do the right thing” when it comes to providing health coverage for their workers. Tragically, that goal is being pushed increasingly out of reach, as many owners are being forced to raise prices on goods and services and/or increase deductibles and premiums in order to continue providing coverage.

Small businesses demand bold action to lower prescription drug prices. Regardless of where they sit on the political spectrum, small business owners want strong government action on this issue, with 87 percent stating it is important for the Biden-Harris administration and Congress to lower prescription medication prices. In a recent survey, small business owners overwhelmingly supported solutions such as capping out-of-pocket costs for seniors, Medicare negotiating drug prices, prohibiting anti-competitive behaviors that delay price competition, and penalizing drug companies that increase their prices faster than inflation.

“The cost of healthcare and prescription drugs have skyrocketed for many small businesses and it’s having a real impact on their growth,” said Small Business for America’s Future Co-Chair Erika Gonzalez, an Allergy & Asthma Medical Professional and small business owner based in San Antonio. “If we are going to have a strong small business sector and economic recovery, we need our policymakers to act to rein in these costs. It’s an urgent priority of small businesses.”

“The American economy is paying the price for high drug costs,” said Protect Our Care Chair Leslie Dach. “As prescription drug prices skyrocket, small businesses are paying more and more for health care, forcing them to increase costs and lower wages, all while big drug companies are spending billions on stock buybacks and shareholder dividends. The future of small businesses depends on standing up to Big Pharma’s greed and giving Medicare the power to negotiate for lower drug prices.”