Back when the ACA was still under debate, I remember the brouhaha over the medical device tax, mostly because of its impact on Medtronic and Senator Klobuchar fighting that tax. WaPo is now reporting that tax, not yet in force, may be repealed:
The House voted Tuesday to repeal the excise tax on medical devices, with nearly five-dozen Democrats joining all but one Republican in backing the bill.
The measure was approved on a 283-132 vote that comes before lawmakers leave Washington for their summer recess at the end of the week.
The 2.3 percent tax on some devices sold by medical manufacturers was created under the Affordable Care Act. It is not set to take effect until 2020, following a move by lawmakers to include its postponement as part of the deal that ended a government shutdown in January. But lawmakers of both parties have long sought to repeal the tax, arguing that its enactment could lead to higher prices for consumers as well as the loss of tens of thousands of manufacturing jobs.
Image credit: “Totally Subcutaneous Implantable Cardioverter-defibrillator in a Child With Complex Congenital Heart Disease and Infection in a Previous Transvenous System,” Revista Española de Cardiologia
It seems to me that medical device demand should be fairly inelastic, meaning that people don’t generally consider a medical device to be an optional part of their life. From crutches to defibs, you get the device in order to keep on living and being productive.
It’s hardly ever for entertainment.
So when the lawmakers proclaim the loss of tens of thousands of jobs, I have to wonder. Is it because the more expensive devices will be avoided due to cost, with less expensive devices substituted in their stead? Or are lawmakers just pulling this out of their asses? In fact, doesn’t this imply we’re indulging in frivolous medical procedures?
Maybe I just don’t understand medicine.
