{"id":2628679,"date":"2026-07-11T15:56:01","date_gmt":"2026-07-11T19:56:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-36-billion-hidden-tax-on-americas-small-businesses\/"},"modified":"2026-07-11T16:04:09","modified_gmt":"2026-07-11T20:04:09","slug":"the-36-billion-hidden-tax-on-americas-small-businesses","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-36-billion-hidden-tax-on-americas-small-businesses\/","title":{"rendered":"The $36 Billion Hidden Tax on America&#8217;s Small Businesses"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-36-billion-hidden-tax-on-americas-small-businesses%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2628679&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>the article discusses how some hospitals in the United states misuse the 340B Drug pricing Program, which was originally intended to help safety-net hospitals serve vulnerable populations by providing discounted medicines. Rather of passing these savings to patients or investing in charity care, many hospitals use the program to inflate thier profits by billing insurance plans adn patients at considerably higher rates. They also acquire smaller physician practices to expand their influence and further increase healthcare costs. This misuse raises costs for small businesses, which <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/msnbc-medical-contributor-wants-a-separate-triage-list-for-the-unvaxxed-joy-reid-wants-them-to-pay-more\/\" title=\"MSNBC Medical Contributor Wants A Separate Triage List For The Unvaxxed \u2014 Joy Reid Wants Them \u2018To Pay More\u2019\">face higher insurance premiums<\/a> and limited bargaining power, as drugs purchased through 340B often do not qualify for rebates. The increased costs threaten the financial stability of small businesses and the broader economy. Congress is considering legislation, like the Tax Exempt Hospital Clarity act, to improve oversight and ensure the program benefits intended populations without <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/andrew-giuliani-announces-run-for-n-y-gov\/\" title=\"Andrew Giuliani announces run for N.Y. Gov.\">harming small businesses<\/a>. Restoring accountability could help protect patients and economic growth by ensuring 340B funds are used appropriately.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><br \/>\n<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><script>console.log(\"ad slot (IC4)\")<\/script><\/p>\n<p>Many hospitals are destabilizing small businesses across America by exploiting a little-known federal charity care program to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republicans-risk-obamacare-paralysis-with-renewed-healthcare-debate\/\" title=\"Republicans risk Obamacare paralysis with renewed healthcare debate\">drive healthcare costs<\/a> up.<\/p>\n<p>The 340B Drug Pricing Program was supposed to help <a href=\"https:\/\/amzn.to\/3YuVZYV\" >safety-net hospitals serve vulnerable patients<\/a> by letting them buy prescription medicines at a discount. But because hospitals are not actually obligated to pass those savings on, many use the program to bill patients \u2014 and their employer-provided insurance plans \u2014 at enormous markups to generate profit.<\/p>\n<p>These tactics are already driving small employers\u2019 costs to untenable levels. Small business health premiums have risen nearly 20 percent in the last year alone. In recent years, rising costs have forced nearly a third of small businesses to cut health insurance benefits.<\/p>\n<p>It\u2019s time for Congress to act by stopping hospitals\u2019 misuse of the 340B program before it further undermines the small businesses that power American economic growth.<\/p>\n<p>The problems with the 340B program were not inevitable. When lawmakers established 340B in the 1990s, they had good intentions: to help safety-net hospitals \u2014 those providing a significant  of care to low-income patients \u2014 free up more resources for charity care.<\/p>\n<p>To that end, the program allows participating hospitals to purchase prescription drugs at substantial discounts. Lawmakers expected hospitals would pass those savings on to patients or reinvest them in better care.<\/p>\n<p>But the program doesn\u2019t actually require hospitals to do either. As a result, some hospitals now use 340B not to support charity care, but to inflate their profit margins.<\/p>\n<p>Many collect steep discounts when purchasing medicines, then turn around and bill patients at huge markups, which are sometimes 10 or more times the drug\u2019s original cost.<\/p>\n<p>Hospitals have also used 340B profits to fund acquisitions of smaller, independent physician practices, which don\u2019t qualify for the program. By buying up these practices, large hospital networks can bring more patients under the 340B umbrella. This sort of consolidation can drive healthcare costs higher, since independent physician practices often provide care at lower costs than hospital systems.<\/p>\n<p>Policymakers are increasingly recognizing how 340B abuse harms patients. But what many don\u2019t consider is that it hurts small businesses, too.<\/p>\n<p>When hospitals raise costs, small businesses face higher health insurance bills for their employees. And unlike large corporations, they often lack the pricing data and market leverage to negotiate better rates. In fact, the  of small businesses offering health insurance has dropped from nearly 50 percent in 2000 to just 30 percent in 2023.<\/p>\n<p>Many small companies rely on drug rebates from drug manufacturers to keep health coverage affordable. But drugs purchased through the 340B program are generally ineligible for these rebates.<\/p>\n<p>As hospitals route more drug purchases through 340B, it raises net drug costs for employers and fuels premium increases, which then get passed on to employees in terms of higher contribution costs for coverage.<\/p>\n<p>Recent research estimates that 340B adds roughly $36 billion to employers\u2019 healthcare costs each year. In many states, 340B abuse is forcing small businesses to pay hundreds of dollars more annually for each employee covered by their health plans.<\/p>\n<p>For startups and family-owned businesses, those costs can be devastating. Small companies must offer competitive health coverage to attract workers and compete with corporations, yet they often operate on thin margins. Inflated healthcare costs force them to choose between being competitive and being financially stable.<\/p>\n<p>Left unfixed, abuse of the 340B program could even jeopardize America\u2019s economic competitiveness.<\/p>\n<p>Small businesses employ nearly half the U.S. private-sector workforce and have long been one of our country\u2019s most important engines of economic growth. Every unnecessary dollar diverted into <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/96-of-pharmacy-technicians-report-drug-shortages-half-of-patients-never-get-the-medicine-they-need-survey\/\" title=\"96% of pharmacy techs report drug shortages, 50% of ... lack necessary medicine: survey.\">higher healthcare costs<\/a> is one that cannot be invested in creating jobs, increasing wages, or developing innovative products.<\/p>\n<p>Fortunately, Congress is working toward a bill that could help address the problem. The Tax Exempt Hospital Transparency Act would require tax-exempt hospitals to provide more detailed information in their annual Form 990 filings, including how they use 340B revenues. That would strengthen congressional oversight of the program while giving employers a clearer picture of the hidden costs driving their healthcare spending.<\/p>\n<p>More importantly, it could lay the groundwork for broader reforms that ensure 340B discounts benefit patients and employers instead of simply boosting hospital revenues.<\/p>\n<p>The original purpose of 340B is worth preserving. Vulnerable patients deserve access to care. But widespread misuse of the program threatens both patients\u2019 health and the financial health of America\u2019s small-business ecosystem.<\/p>\n<p>Congress should restore accountability to 340B and ensure the program supports the vulnerable patients it was meant to help, without undermining the small businesses that keep America\u2019s economy growing.<\/p>\n<\/p>\n<p><i><b>The views expressed in this opinion article are those of their author and are not necessarily either d or endorsed by the owners of this website. 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