High drug prices hurt small businesses

Politicians talk a lot about small businesses during elections, and this has certainly been a hot topic as the race for our next president enters the final stretch.

As candidates campaign this fall, they should address how excessive health insurance premiums impact entrepreneurs and offer solutions to bring down those costs.

We have been working to advance policies to stabilize health insurance premiums for Illinois small businesses and recently secured a significant win. Specifically, policymakers enacted a law providing that in 2026, the Illinois Department of Insurance will have the authority to deny or modify excessive health insurance premiums for small businesses. By passing this legislation, Illinois joined more than 40 states that already provide some form of prior approval for health insurance rates.

With bipartisan support, another bill addressing health insurance was enacted this past legislative session. The Healthcare Protection Act was robust, and among other things, requires health insurance companies to update their networks in a timely fashion and prohibits them from requiring prior authorization before policyholders can receive inpatient mental health treatment in a hospital.

There is another important bill that could significantly reduce insurance premiums for small businesses, but it has stalled in the General Assembly. House Bill 4472 paves the way for an Illinois Prescription Drug Affordability Board to put guardrails around the excessive cost of certain drugs.

These high costs significantly increase health insurance premiums, causing small businesses to subsidize the profits of large drug companies. The unreasonably high cost of certain drugs also restricts access to medication, causing people to forgo or ration needed medication.

House Bill 4472 languished in a legislative committee last year without receiving a vote despite public support for the legislation. This means the bill never received an up-or-down vote in committee, was not sent to the floor or voted on by the majority of Illinois representatives.

Important bills like this must receive votes in committee, even when special interests oppose the legislation. Democracy provides the public should be heard through their duly elected representatives on issues as crucial as health insurance and the costs of prescription drugs.

Advocates for a Prescription Drug Affordability Board are holding town halls throughout the state, including Moline, Peoria and Chicago, to educate the public about this legislation. There also are materials available for small business owners and advocates to learn more about efforts to stabilize health insurance premiums by lowering the excessive cost of certain drugs. Contact us at sbacil.org to learn more.

Small businesses drive our economy, create jobs and support local communities. Please remind political candidates should you see them campaigning at train stations and other public events.

Consider reaching out to the candidates who want to represent you and let them know small businesses and their employees should have access to affordable health insurance and vital prescription drugs. Election season is a crucial time for the small business community to make its voice heard.

• Elliot Richardson is co-founder and president of the Small Business Advocacy Council.