Medical device tax: kick the can down the road
December 23, 2015
by Philip F. Jacobus, CEO
First of all Merry Christmas!
Thank God Congress gave us a Christmas present and passed a budget that the president signed.
As part of the budget a two-year moratorium has been placed on the medical device tax. So in two years we're going to be talking about all of this again.
I'm so confused by what's going on in Washington. To me it seems crazy to tax medical device manufacturers and not use the funds generated to provide better health care.
The health care manufacturers have made a big deal about the 2.3 percent tax, but in the end it probably only costs them 1.5 percent because they deduct the tax payment anyway.
There was some industry group that claims that the medical device tax will cost jobs, but I suspect that's baloney. I can't imagine that any health care provider is going to purchase significantly less product because the product cost 2.3 percent more.
The Medtronic website says the company generated sales of almost $4 billion — that's billion with a "B" — and according to another story I read, Medtronic planned to pay $210 million in medical device taxes. It's not a huge amount of money and in my opinion the real "sin" is that this money is not being used to provide better health care.
All of this is part of the Affordable Care Act. There have been over 50 attempts in Congress to repeal the ACA. It seems as though it's never going to happen and I wish Congress would focus on something else.
My wife Barbara, who is no economist or politician, has a theory that the first step to getting our country headed in the right direction would be better quality roads. She thinks that dodging potholes and bumpy roads give people an opinion that they're living in a Third World country. I agree... I always agree with what Barbara says by the way....
I don't know about you but every time I see our congressional leaders fighting the same fight over and over again it makes me understand why so many people are supporting Mr. Trump.
Anyway, from all of us at DOTmed to all of you who celebrate Christmas have a very Merry Christmas. Thank God for everything you have.
Thank God Congress gave us a Christmas present and passed a budget that the president signed.
As part of the budget a two-year moratorium has been placed on the medical device tax. So in two years we're going to be talking about all of this again.
I'm so confused by what's going on in Washington. To me it seems crazy to tax medical device manufacturers and not use the funds generated to provide better health care.
The health care manufacturers have made a big deal about the 2.3 percent tax, but in the end it probably only costs them 1.5 percent because they deduct the tax payment anyway.
There was some industry group that claims that the medical device tax will cost jobs, but I suspect that's baloney. I can't imagine that any health care provider is going to purchase significantly less product because the product cost 2.3 percent more.
The Medtronic website says the company generated sales of almost $4 billion — that's billion with a "B" — and according to another story I read, Medtronic planned to pay $210 million in medical device taxes. It's not a huge amount of money and in my opinion the real "sin" is that this money is not being used to provide better health care.
All of this is part of the Affordable Care Act. There have been over 50 attempts in Congress to repeal the ACA. It seems as though it's never going to happen and I wish Congress would focus on something else.
My wife Barbara, who is no economist or politician, has a theory that the first step to getting our country headed in the right direction would be better quality roads. She thinks that dodging potholes and bumpy roads give people an opinion that they're living in a Third World country. I agree... I always agree with what Barbara says by the way....
I don't know about you but every time I see our congressional leaders fighting the same fight over and over again it makes me understand why so many people are supporting Mr. Trump.
Anyway, from all of us at DOTmed to all of you who celebrate Christmas have a very Merry Christmas. Thank God for everything you have.