That said, I read an interesting article from ModernHealthcare.com (Modern Healthcare Article) which states that the House is proposing a compromised version of the Senate’s bill, and it appears to be much less taxing (no pun intended). According to the article, under the House’s bill, rather than an aggregate fee, a 2.5% point-of-sale tax would be applied. The House’s plan aims to bring in $27 billion from the medical device industry over the course of 7 years beginning in 2013.
In the House plan, medical manufacturers would be able to reduce the total fee they incur by deducting the tax from annual corporate tax filings. Companies wouldn’t have that benefit with the Senate’s aggregate fee plan and would end up paying all of that $40 billion as it currently stands. The lesser of two evils (in my opinion) is still evil and would stunt the job growth just starting to take seed now. Worse, it could drive further off-shoring in our global economy where US chartered companies are looking to save operational and developmental costs. (Note: we have had 4 new operations/ manufacturing positions added in the past few weeks with increase emphasis on lean and out-sourced/off-shore manufacturing management. Not sure this is all coincidence).
Whether or not the House will have any impact on the Senate remains to be seen, but I remain optimistic that there will be some change in the current plan if it continues to be contested. I understand that no companies are excited about getting further taxed. It’s just my hope that the additional tax won’t place the burden on consumers and cause healthcare reform to hurt the very people it’s trying to help. However, by 2013, things could change. Let’s hope for the best.
President, Legacy MedSearch
ABOUT LEGACY MEDSEARCH
With 25 years in the medical industry, our recruiting expertise extends to most areas of surgery, diagnostic & therapeutic imaging & radiology, including MIS & LIS procedures. We work with manufacturers of a variety of implants & technologies: IMD, AIMD and Class I, Class II and Class III devices with special emphasis on orthopedics, neurosurgery, radiology, neuroscience, cardiology and cardiovascular and other emerging medical technology (PMA, 510(k) & IDE device classes).
Paula Rutledge is the President of Legacy MedSearch, a sponsor of Medical Devce Guru. Legacy MedSearch is a retained recruitment provider to emerging medical companies.
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