From the Indianapolis Star:
Indiana's medical device and orthopedics industry will continue to fight against a tax on its products after the U.S. Supreme Court upheld the tax as part of a broader affirmation of the federal health care overhaul.
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“Now that we know the Affordable Care Act will not be overturned, the Senate needs to follow the House’s lead and act in the best interests of American patients and American companies who produce these vital medical technologies. Repealing the tax, which is on top line revenues of all companies that sell medical devices in the U.S., is a critical imperative that saves jobs and drives continued medical treatment innovation here at home,” said Steve Ferguson, chairman of the board of Cook Group, the parent company of Bloomington-based Cook Medical.
"For companies like Cook it will amount to an additional 10 to 15 percent tax on top of state taxes of up to 8 percent and federal taxes that can crest at 35 percent, the highest income tax in the world," Ferguson said.
Ferguson also said that the tax will make the industry less competitive internationally and harm patients, "who will be deprived of breakthroughs, research and development, suppliers and local businesses in thousands of communities. "
Bill Kolter, the vice president of government affairs at Warsaw-based Biomet concurred with Ferguson, saying "we believe that the medical device tax is misdirected policy."
"It is contrary to the government goal of promoting well paying jobs, American leadership in manufacturing and the promotion of technological advances that deliver cost effective care," he said.
Kolter warned that the tax could cause small medical device companies to go to bankrupt because it applies to sales, not profits.
The industry has been fighting to repeal the tax through the legislative process.
The House of Representatives has repealed the tax. Both Kolter and Ferguson urged the Senate to repeal the tax as well.
There are at least 90 medical device companies in Indiana employing almost 25,000 people, according to the Indiana Chamber of Commerce.
AdvaMed, a trade association representing the medical device industry, released a statement saying it will continue to work with legislators to repeal the tax.
http://www.indystar.com/apps/pbcs.dll/article?AID=2012206280349
