Tag Archives: medical technology and innovation

Obamacare Medical Device Tax: Sending Research, Development and Innovation Overseas

From the National Center for Policy Analysis:

The effect of Obamacare on innovation within the health care sector is staggering. Scott Atlas, senior fellow at the Hoover Institution, explains how the law has begun to change research, development and innovation — activities which traditionally have taken place in the United States — thanks to the ACA’s $500 billion in new taxes, many of which fall on medical device and drug manufacturers. The result? Companies are moving overseas.

via Obamacare: Sending Research, Development and Innovation Overseas.

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In 2013, Get Ready For An ObamaCare Tax Onslaught

At Forbes.com, Grace-Marie Turner summarizes the new taxes imposed by Obamacare:

  1. Medical Device Tax
  2. A new Surtax on Investment Income
  3. A new Medicare Tax
  4. The new Flexible Spending Account Tax
  5. ObamaCare also tightens the screws on Itemized Medical Deductions
She writes:

Many more taxes are coming, including a “tax penalties” for individuals and businesses who don’t comply with ObamaCare’s mandate that they purchase government-approved health insurance.  The Congressional Budget Office expects these penalties for non-compliance to bring in $160 billion in the first decade they are in effect.

ObamaCare’s $1 trillion in total tax increase hit everything from health insurers, drug companies, and tanning salons to Health Saving Accounts and – eventually – high-cost employer-based health insurance.

Read more: As 2013 Begins, Get Ready For An ObamaCare Tax Onslaught.

See also: “An Unhealthy Dose of Obamacare Taxes” at Reason.com.

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Democrat Evan Bayh exposes ObamaCare’s dangerous medical device tax

In the Wall Street Journal, former Indiana governor and U.S. Senator Evan Bayh (D) writes:

Medical devices have contributed to remarkable advances in numerous areas: artificial hips and knees, and devices used in the treatment of cancer, and for angioplasty, vascular surgery and in-vitro fertilization, to name a few. Many of these devices have not only improved the quality of life for patients, but also produced health-care cost savings—for instance, each time an angioplastic balloon made open-heart surgery unnecessary.

All of this is now threatened by the only law that is guaranteed to pass in Washington: the law of unintended consequences. …

For a typical company, [the] 2.3% tax on revenues equals a 15% tax on profits. W Many marginally profitable businesses will then hemorrhage red ink, since they’ll have to pay the excise tax whether they are making money or not. …

As a result of the looming device tax, production is moving overseas, good jobs are going to Europe and Asia, and cutting-edge medical devices will now be produced elsewhere for import into the U.S. …

If Congress acts soon, however, most of the harm can be forestalled. There is hope. The House—233 Republicans, joined by 37 Democrats—voted in June to repeal the tax. In the Senate, 33 Republicans are on record in support of doing the same. While no Democrat has stepped up to co-sponsor the legislation, several speak favorably in private. Even Elizabeth Warren, the Democratic Senate candidate from Massachusetts and a staunch progressive, has now come out in favor of repeal.

Read more: Evan Bayh: ObamaCares Tax Raid on Medical Devices – WSJ.com.

(via NCPA)

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ObamaCare vs. Personalized Healthcare choices

At Forbes, John C. Goodman has two articles on personalized medical care:

Personalized Healthcare Choice vs. Government Mandated Obamacare, Part 1, by John C. Goodman (Forbes, 9/18/12). Excerpt:

Personalized medicine is the future. It’s where the science is going. It’s where the technology is going. It’s where doctors and patients will want to go. Yet, unfortunately for many of us, this is not where the Obama administration wants to go.

Can Personalized Healthcare Survive Obamacare’s Medicine Assembly Line?, by John Goodman (Forbes, 9/20/12)

We are entering the age of personalized medicine, where the therapy that’s best for you will be based on your physiology and genetic makeup – and may not be right for any other patient.

Yet standing in the way of this boundless potential is an Obama administration whose entire approach to health reform revolves around the idea that patients are not unique and that bureaucrats can develop standardized treatments that will apply to almost everybody with a given condition. When former White House health adviser Ezekiel Emanuel told CNN recently that “personalized medicine is a myth,” he was fully reflecting the worldview of the authors of health reform.

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The FDA: killing promising adult stem cell research?

At the Daily Caller, Dr. Keith Lockitch of the Ayn Rand Center for Individual Rights writes:

There is no question that the government must spare no effort in defining and prosecuting real cases of medical fraud, malpractice and criminal negligence — and there is no question that such cases exist in the stem cell market. But instead of serving as our protector against charlatans who prey on the sick and desperate, the FDA has itself become an agent of coercion, forcibly denying us the freedom to use treatments that could save our lives.

Read the whole article: Will FDA choke off promising adult stem cell research? | The Daily Caller.

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The Federal Governments War On Medical Innovation – Forbes

At Forbes.com, Paul Hsieh, MD writes:

The federal government is waging a stealth two-pronged war on medical innovation. And it will cost not just American jobs, but American lives.

The first prong is through new taxes. Recently, the Cook Medical company announced that it was canceling plans to open new factories because of the impending ObamaCare tax on medical device manufacturers scheduled to take effect in 2013. …

The second prong of the war on innovation is through regulations. The Wall Street Journal recently reported how a single FDA scientist, Dr. Robert Smith, blocked approval of digital mammography machines for several years last decade. …

When you need advanced medical care in 2022, don’t let the government’s war on medical innovation restrict your doctor to today’s 2012 technology.

The Federal Governments War On Medical Innovation – Forbes.

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Obamacare’s Tax on Medical Devices: Cuts R&D by $2 Billion a Year

Benjamin Zycher, Ph.D has written a new policy brief published by the Pacific Research Institute. He summarizes it with these key points:

  • The Patient Protection and Affordable Care Act (“Obamacare”) imposes an excise tax of 2.3 percent on medical equipment and supplies, effective in 2013.
  • Regardless of the past and recent profitability of investment in the research and development of new and improved medical devices, this tax will reduce such investment.
  • A conservative estimate of this adverse investment effect is about 10 percent annually through 2020, or about $2 billion per year.
  • Based upon the peer-reviewed literature on the relationship between investment in medical technology and improvements in life expectancies, this investment decline can be predicted to yield an annual decline of about 1 million expected life-years for the U.S. population, concentrated upon particular population subgroups.
  • The economic cost of that reduction in expected life-years would be at least $100 billion per year, a sum substantially greater than the entire U.S. market for durable medical equipment and other medical products.
  • Accordingly, the excise tax on medical devices should be repealed

Read the policy brief here: Obamacare’s Tax on Medical Devices: Cuts R&D by $2 Billion a Year.

Via John R. Graham.

Update, June 3, from the Wall Street Journal’s op-ed on the medical device tax:

As even the liberal papoose Elizabeth Warren recently put it, the device tax “disproportionately impacts the small companies with the narrowest financial margins and the broadest innovative potential.”

 

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