Posted on 11/09/2012 7:54:21 AM PST by Rio
The excise tax on medical devices, a controversial part of President Barack Obama's Affordable Care Act, is now evolving from a medical reform issue to a tax reform issue. In a press conference in Boston last month, AdvaMed CEO Stephen J. Ubl said the group will seek to dramatically change the tax as part of the tax reform negotiations taking place to avert the "fiscal cliff" scheduled to occur when the Budget Control Act of 2011 goes into effect.
Even if the tax cannot be totally undone, it's hoped within the industry that some of its most onerous provisions could be changed. One goal, for example, is to exempt start-ups from the tax for a certain period of time.
That said, some of the staunchest opponents of the tax remain hopeful that it will be repealed, citing support from Democrats in the House and the Senate. Even liberal U.S. Senator-elect Elizabeth Warren (D-MA), mindful of medical device employment in Massachusetts, is opposed to the tax. Senior Massachusetts Sen. John Kerry has also expressed concern about the tax. Even if the Senate can muster enough votes to support a House-initiated repeal, it's doubtful that Congress could overcome a presidential veto.
Significant change of the tax as part of a major tax overhaul seems very possible, however. The major obstacle will be getting on the radar screen given the enormity of the tax reform issues under consideration. Overall tax reform provides the opportunity to find other revenue sources for Obamacare that won't affect future medical device development in the United States.
Widespread cutbacks have already begun at some major medical device makers. Some are citing the new excise tax as the cause. Others are citing slowing demand coupled with growing pressures to reduce costs of medical devices. It will be interesting to see if jobs are reinstated if the device tax is fundamentally revised.
Good question ;)
Our devices are different, the hospital is the end-user. Insurance isn’t part of our equation. (as an aside, I had a Medtronic spinal stimulator put in on the 11th of Oct, removed on the 30th due to complications! :( )
Our product holds medications. The hospital nursing staff use our product. The Obamacare tax hits us hard.
Layoffs help ‘streamline’ our cost structure when dividends drop so the investor’s numbers look better. It has happened in the past and is bound to happen again.
My son works for Stryker and I’m worried.
.As far as the baclofen pump, I got mine just at the right time...my mobility was greatly impaired and before the wheelchair my neuro said, we could try ITB. And voila, after lots of PT, I was walking almost normally again.
FYI, since you work with the device, I found this a few months ago, they're are beginning to believe that ITB used early rather than later would keep a lot more people in the MS community mobile. I had access to the entire article, but this is the abstract.
http://msj.sagepub.com/content/17/5/623
I believe the tax is on gross sales as opposed to net sales which is gross sales minus expenses.
Okay, thanks for that explanation, it hadn’t dawned on me that a medical provider would be the end user.
Thanks. I’ll check it out.
Over the cliff; the RATS made the cliff now they should go over it. Later the Democrats can be seen as giving tax breaks to the rich.
"We’ve known about it for months, and there are many more like it.
We've known for almost 2 years. It's just that there is very little real journalism in Washington, so 98% of the population, including every single li
Why Romney went after the "Wheelchair Tax" I will never comprehend. They could have done a fantastic ad, a remake of the Ryan pushing the old lady over the cliff, but with Biden and Obama demanding she pay the tax before shoving her over the edge.
At a minimum.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.