http://www.cnycentral.com/news/story.aspx?id=799159#.UL1NnOQxT-4
Welch Allyn to cut 275 jobs over next three years
EXCERPT:
Company leaders say the cuts are part of a restructuring plan. They blame the layoffs on the new medical device tax set to take effect next year as part of the Affordable Care Act. The mandate requires a 2.3% tax on sales of medical devices.
“This restructuring plan will help us maintain competitive levels of investment in new products and technologies that are necessary to meet the changing needs of the global healthcare environment,” stated Meyer.
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See here:
http://www.massdevice.com/news/layoffs-medtronic-cut-another-500-jobs-hopes-saving-125m-year
Medtronic to cut another 500 jobs in hopes of saving $125M per year
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Also see here:
http://www.massdevice.com/news/zimmer-axes-jobs-cut-costs-ahead-med-tech-tax-personnel-moves
Zimmer axes jobs to cut costs ahead of med-tech tax | Personnel Moves
EXCERPT:
Zimmer plans cuts and outsourcing at its Warsaw, Ind., headquarters partially to offset the impending burden of a 2.3% medical device tax.
Zimmer Holdings (NYSE:ZMH) announced layoffs at its Warsaw, Ind., headquarters, pointing to the expected burden of the medical device tax as partly responsible for some of the losses.
RSNA was very slow last week. Was the slowest I’ve ever seen it in 20 years in the medical business.
Since my industry does not have “29” hour employees, I suspect we may all become 1099 employees, which, could be a good thing, at the end of the day.
If all employees had to make quarterly payments to the IRS, along with the full amount of MedicCare and Social Security, I think that may actually sway the American People.
“They are typically job-creators, but thanks to the ObamaCare tax, they, for their very survival, have become job-eliminators...just in time for the holidays.”
Well, I can’t be responsible for every undercapitalized company in America!! - Hillary Clinton.
I suspect the obama people will say the same thing if questioned.
First, let me say that 0bamacare is still, and always has been, a piece of legislative effluent from the cesspool mind of an illegal alien usurper.
That being said, I also am NOT ready to buy into this notion either, that these companies are laying off due to the taxes included in the commie crap that is 0bamacare.
The tax applies to all medical device makers. As with other taxes, manufacturers will pass this along to consumers via higher prices. If there is evidence to the contrary, I’ve not seen it.
Perhaps the fine economic minds on FR can explain.
(sigh) I was hoping I could say this to him. Oh, well...
My guess is that the US companies will have to cut costs so as to compete with foreign makers of medical devices or US companies making the devices overseas. I don’t think simply raising the price of the device will be feasible or possible.
Obamanation style Communism File.
The company I work for just layer off 20% of their manufacturing line people. Normally the business is pretty stable and grew a lot even through the downturn with a mix of consumer, military and multiple comercial markets, but they’ve got too much inventory and sales are way down. Companies aren’t making the upgrade investments and rebuilding after Sandy is going very slowly so we aren’t seeing much of that business yet. Sequestration is also threatening to hit us hard as our military contracts a in negotiations and are likely to see deep cuts.
Surprisingly our health benefits costs did not go up this year. I don’t know the full story but am told that restrictions on insurance company profits under Obamacare held them back them from increasing premiums. The only question is much of that will insurance companies take before they decide the business isn’t worth it and get out.