As
the federal government shutdown showdown neared an end earlier this month, it
appeared that the one change that would be made to the Affordable Care Act
would be a repeal of the law’s tax on medical devices.
That
didn’t happen, but opponents of the tax say the fight isn’t over.
“This
is something that leaders of both parties know is a high priority for a number
of members, both Democrat and Republican,” said Sen. Joe Donnelly, D-Ind.
More
than any of the industry fees or taxes imposed by the law to help pay for
extending health insurance to millions more Americans, the medical device tax
continues to be hotly debated. Bipartisan majorities voted in the House last
year and in the Senate this year to repeal it.
That’s
in large part because repeal is the top goal of an industry that fought the tax
from its inception and has companies spread throughout all states, including a
large presence in Indiana, Massachusetts, and Minnesota.
“The
medical device industry is clearly both very aggressive and very effective in
its lobbying efforts,” said Paul N. Van de Water, a senior fellow at the Center
on Budget and Policy Priorities who argues the tax should not be repealed.
“They’ve succeeded in mobilizing lots of people from device companies around
the country. They’ve just done much more than any other industry has been
doing.”
But
the industry still faces major obstacles. Opponents need to find a way to
replace the approximately $30 billion in revenue that the 2.3 percent tax on
device purchases is expected to raise over the next decade. And, if the tax is
repealed, insurance companies, drug makers and hospitals will clamor for repeal
of the new fees and reduction in reimbursements they face.
“If
the device tax gets addressed, then there will be many others wanting their
issues to be addressed,” said Phillip Swagel, a professor at the School of
Public Policy at the University of Maryland who thinks the device tax has
little policy rationale. “So it’s hard for any one measure to have smooth
sailing. And of course getting anything through is difficult in general.”
…
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