The USF "Tech Tax": A Threat to Digital Health Innovation
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The USF "Tech Tax": A Threat to Digital Health Innovation
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The Universal Service Fund (USF), originally designed to increase connectivity, has evolved into an $8 billion annual expenditure, resulting in a nearly 40% increase in phone bills for American consumers.
With calls to expand USF contributions to include tech services and broadband providers, there is a growing concern that such a "tech tax" would stifle innovation in digital health therapeutics, including FDA-approved apps for conditions like hypertension and diabetes, as well as AI-powered healthcare solutions.
Critics argue that instead of seeking new revenue streams, policymakers should focus on auditing existing programs and cutting wasteful spending within the USF, especially given its questionable effectiveness in bridging the digital divide in rural areas, which technology is already addressing.