The healthcare reform law imposes a 2.3 percent excise tax on medical devices. Lawmakers justified the excise tax for the windfall (increased volume and profit) device companies would see after millions of individuals become insured under healthcare reform.
The analysis uncovered three things:
• Newly insured patients are much younger than medical device users.
• Hospital purchasing seems to be getting worse.
• Universal healthcare in Massachusetts did not demonstrate windfall for eight out of nine medical devices companies.
ROTH Capital Partners’ findings suggest medical device companies may not see much windfall at all. The report also suggests healthcare reform will have a negative impact on medical device jobs and innovation.
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