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The Medical Equipment Design Blog is the place for conversation and discussion about medical grade materials and products, electrical and electronic equipment, computers, imaging & software, and home healthcare & diagnostics as used in the medical industry. Here, you'll find everything from application ideas, to news and industry trends, to hot topics and cutting edge innovations.

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Expectations for the Excise Tax

Posted February 11, 2011 7:05 AM

U.S. medical device manufacturers will face a new challenge in 2013 when a 2.3% excise tax will be levied on taxable medical device sales by the Patient Protection and Affordable Care Act. Increased outsourcing is predicted by some as companies prepare now for statute implementation. Is your company considering outsourcing as a way to contain design and development costs?

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#1

Re: Expectations for the Excise Tax

02/11/2011 7:45 AM

I have a friend that's the district sales manager for a large medical device company. I wasn't aware of it until he told me, that medical devices are one of the few things left that are still primarily manufactured within the US due to the stringent quality that must be met.

It's no surprise that this industry is being targeted by the current administration. I'm sure that outsourcing and/or moving manufacturing operations overseas is being seriously considered.

It's nice to know that our government is looking out for patients rights, while at the same time making medical care more affordable, by levying a new tax on a group of manufacturers that so far, have been able to keep operations and manufacturing here in the US. Great idea!!! *****

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#2

Re: Expectations for the Excise Tax

02/11/2011 11:21 PM

How can a sales tax on medical devices sold in this country cause outsourcing?

we in the US have been subsidizing the medical research that is a benefit for patients around the world for decades.

We pay retail for cutting edge, everyone else gets a discount on the second generation of procedures, care & devices.

the healthcare & insurance industries have a couple of the most powerful sets of lobbyists

which is why the healthcare bill is such a piece of shyt

the usual scenario industries acted irresponsibly & finally there is a less than ideal reaction by the government.

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#3

Re: Expectations for the Excise Tax

02/12/2011 3:54 PM

The irony of this is that this law is supposed to be affordable care act, yet they charge an excise tax on the sales of medical devices increasing the cost of healthcare. This is bollocks.

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