May 11, 2026 Emma Higbee
For small businesses, rising health care costs are more than just an abstract policy issue. These costs directly challenge a small business’s ability to support its employees, stay competitive, and plan for the future. Yet many small employers face increasing premiums without a clear understanding of what is driving them.
Last year, Senators Roger Marshall (R-KS) and John Hickenlooper (D-CO) introduced the Patients Deserve Price Tags Act, a bipartisan bill designed to make health care prices more transparent and understandable. This legislation builds on existing federal rules by requiring hospitals, insurers, and other providers–such as labs and imaging centers–to disclose pricing information in clearer and more standardized ways. At its core, this bill addresses a familiar frustration: patients often do not know what their care will cost until after they receive it.
A key component of this legislation is billing clarity. After obtaining care, patients would receive both an explanation of benefits from their insurer and an itemized bill from their provider, making it easier to compare estimated and actual costs. For small business owners, this kind of clarity can help identify key cost drivers and make more informed decisions when selecting and renewing their plans. The bill also strengthens transparency requirements by standardizing how price data is presented and requiring disclosure of the formulas used to calculate certain charges. In addition, it increases enforcement by mandating regular compliance reviews and imposing stricter financial penalties on providers and insurers that fail to meet transparency standards. These provisions aim to make price data practical and usable for employers.
The need for reform is clear. More than 40 percent of people with employer-sponsored insurance report difficulty paying for care, and many delay or skip treatment due to cost. Policymakers have long argued that transparency could help address this problem by enabling consumers to “shop” for care and encouraging competition among providers. While recent transparency efforts have significantly expanded data availability, the Patients Deserve Price Tags Act focuses on making that information more accessible and useful–an important step for small employers trying to navigate a complex system.
Expanded transparency could meaningfully improve patient engagement with the health care system. By providing more accessible and accurate pricing information, including real, upfront costs rather than estimates, this legislation can help small employers better anticipate expenses and design more sustainable health benefits. This increased visibility can also create more opportunities to make cost-conscious choices, especially for routine or scheduled care.
In this light, the Patients Deserve Price Tags Act represents an important step forward in creating an affordable health care system for small businesses and their employees. By building on recent gains in transparency and strengthening compliance, this legislation will help ensure that pricing information remains both available and usable over time. More importantly, it lays the groundwork for greater competition and accountability, which can help moderate insurance costs for small employers.
Ultimately, while transparency alone will not solve every challenge in the health care market, the Patients Deserve Price Tags Act represents a meaningful and pragmatic first step. For small businesses in particular, having clearer, more reliable pricing information will begin to level the playing field in a system that has long favored larger employers with greater bargaining power and resources. By improving access to usable data and holding providers and insurers accountable, this legislation will address one of the root problems driving uncertainty and high costs. Over time, these changes can contribute to a more functional and competitive marketplace–one where small businesses are better equipped to manage costs, invest in their employees, and advocate for more affordable coverage.
The SBAC is advocating for the passage of the Patients Deserve Price Tags Act! Please reach out if you would like more information or to get involved.
Emma Higbee is a rising senior at the University of Michigan studying Philosophy, Politics, and Economics, and a Policy Research Intern at the SBAC.