Medical device industry leaders are bracing against the inevitable impact of a new 2.5% tax on the life saving products they produce. A House Bill, which passed on November 7th, proposes a major health system overhaul and includes this 2.5% tax on medical devices, to be implemented in 2013. Industry sources say this tax would cost device manufacturers about $20 billion over 10 years.
Leaders in the Medical Device Industry maintain that this tax will harm innovation and drive more medical-technology development outside the United States. Congress reasons that 25% to 40% of the tax could be passed on to hospitals, but analysts from Morgan Stanley don’t see this as a viable option in the near term. One CEO in the medical device industry warns, “This tax will invariably impact our investment decisions on new therapy development. Most importantly, this can serve to diminish patient access to new, life-saving medical technologies.” (William H. Hawkins, Medtronic)
At Connecticut Plastics, Inc. we manufacture precision plastic parts for the medical technology industry. We provide our customers with quality parts and on time delivery. We are hopeful that any major health system overhaul will not shift medical technology development overseas. Connecticut Plastics engineers are willing to work with customers during all phases: development, design, material selection, manufacturing, inspecting and more. Please visit our website www.connecticutplastics.comfor more information.
