Rising Healthcare Cost Blamed for Slowed Small Business Growth

89% of small businesses think the cost of prescription drugs is too high. 55% of small businesses providing health care coverage to employees say high costs hinder growth opportunities. 63% of small business owners have an unfavorable view of pharmaceutical companies.

These negative beliefs about drug and healthcare preparation in the United States are revealed in a new National Small Business Survey for America’s Future.

Small Business for America’s Future is a national coalition of business owners and leaders working to provide a voice for small businesses at every level of government. The survey interviewed 1,052 small business owners in the United States about their thoughts on health care and drug costs.

Survey: Rising Healthcare Costs Affecting Small Businesses

Among the key findings, 66% of small businesses believe that the currently prescription drug market is not functioning and requires a major overhaul. 87% of small business owners say it’s important for the Biden Harris administration and Congress to take action to lower the costs of prescription drugs.

The survey results are important because they confirm that the high cost of healthcare, including prescription drugs, is a major concern for small businesses. Many small business owners believe that the financial impacts of healthcare and pharmaceuticals are holding back business growth.

Small Business for America’s Future co-chair Erika Gonzalez, a medical allergy and asthma specialist and owner of a small business based in San Antonio, commented on the urgency of the situation:

“The cost of healthcare and prescription drugs has increased for many small businesses and have had a real impact on their growth.

“If we have a strong small business sector and economic recovery, we need our policymakers to act to curb these costs.” “It’s an urgent priority for small businesses,” Gonzalez added.

Postponement of employment

More than a third of small businesses surveyed by rising healthcare costs mean they have delayed hiring a new employee.

40% say they have raised the costs of products and services as a result of the increase in healthcare costs.

15% of survey respondents admit that they have reduced their workforce or have laid off an employee due to rising healthcare costs.

More than a third of small businesses that provide health care coverage to employees say they have changed or reduced this coverage as a result of rising costs.

What’s the solution?

Research shows that small companies in the United States support policies and measures to reduce prescription drug and healthcare costs.

82% of those surveyed said it was time for the government to limit unjustified price increases so that they did not outpace inflation. A similar number (79%) believe that lower drug prices will not harm the healthcare industry’s ability to develop new treatments and therapies.

Nearly 90% of small business owners support an end to the costs of out-of-pocket prescription medications for seniors enrolled with Medicare.

85% support adopting policies that eliminate anti-competitive behaviors and patent misuse that broaden the monopoly of drug brands that prevent price competition

Small Business For America’s Future report underscores the importance and urgency of developing an equitable economic framework in relation to healthcare that works for small business owners and their employees so that business growth and sustainability can be nurtured.

Photo: Depositphotos

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