Three interesting facts about this tax: 1. It’s been in place for nine months and we haven’t seen any significant consequences. 2. The medical device industry has a very energetic, very aggressive lobbying campaign. And in this particular case it’s proved to be very effective in convincing a lot of members of Congress that it’s in their political interest to support repeal of the tax. The industry also has former members of Congress such as former senator Evan Bayh arguing on their behalf, and that sort of thing makes a difference. 3. Who is going to actually be paying that 2.3%? It’s going to be a mixture. To some extent it’s going to come out of the profits of manufacturers. The industry is highly profitable. To the extent that some small part of this ends up being borne by final consumers, it’s going to be almost invisible in people’s insurance premiums, because medical devices only represent a very, very small fraction of healthcare spending. salon/2013/10/04/gops_growing_obsession_why_theyre_fixated_on_the_medical_device_tax/
Posted on: Sat, 05 Oct 2013 04:26:40 +0000
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