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Federal - HR 1295State – HB 391
Kathryn FiddlerNursing 525
The Job-Killing Medical Device Tax
National Center for Policy Analysis
Non profit, non partisan organization Examines public policy significant to
Americans Suggests positive change based on the
best scholarly research
HB 1295 – Repeal the excise tax on medical devices
PPACA 2010
Embedded taxes to offset $1trillion cost
Medical Device tax of 2.3% Taxes paid on all revenue Estimated cost to medical device
companies = $3 billion annually Additional costs for medical devices to be
passed on to consumers, providers and hospitals
What is a medical device?
“Instrument, apparatus, implement, machine, implant, or other similar or related articles including a component of those articles – For example: Durable medical equipment Stents, pacemakers, orthopedic
implants Monitors, imaging machines
Who will this tax impact?
Medical Device Industry
Decreased profit margins
Increased outsourcing
Supply disruptions or shortages
Who will this tax impact?
Consumers and health care providers
Increased cost of national health expenditures
Less innovation related to less resources
Who will this tax impact?
US Workers
Device industry employs 430,000 workers
Average salary is 40% greater than average US pay
Layoffs and job loss
Recommended repeal of the Medical Device Tax Significant blow
to a growing health care industry
Increase cost of care
Result in loss of American high paying jobs
Health Policy Brief: Workplace Wellness Programs
Robert Wood Johnson Foundation
Healthaffairs.org
Mission: To improve the health and healthcare of all Americans
Workplace Wellness Programs
Americans have poor health habits Growing rate of chronic disease Rising cost of health care
Wellness programs Reduce absenteeism Reduce employee turnover
Workplace Wellness Programs
Affordable Care Act provisions Increased rewards for employees who
meet health goals Offer reasonable means for meeting
standards Provide yearly opportunity to enroll Rewards must provide equal opportunity
to similar people
Workplace Wellness Programs
Concerns - Employers Employers desire flexibility as well as
opportunity for meeting goals Employees should bear burden of lifestyle
choices Seek opportunity to improve productivity
and reduce costs
Workplace Wellness Programs
Concerns – Unions and Consumer Groups
Cost shifting versus health improvement Incentives are unfair Poorly designed programs may “Coerce”
rather than encourage
Workplace Wellness Programs
The Future 63% of employers have workplace wellness
programs Literature suggests wellness programs
decrease costs Average health care costs fell $3.27 for ever 1$
spent Costs for absenteeism decreased by $2.73
ACA provides for rewards up to 50% of employee health benefit costs
Employers need to consider equity for all employees as they develop these programs
References
HB 391 State Employees and Retiree Health and Welfare Benefits Program - Wellness Program, 2013 Session Stat. (2013). Retrieved March 21, 2013 from http://openstates.org/md/bills/2013/HB391/
Herrick, Devon. (2012). The Job-Killing Medical Device tax (pp. 1-4). Washington, D.C.: National Center for Policy Analysis.
HR 1295 - To amend the Internal Revenue Code of 1986 to repeal the excise tax on medical devices, and for other purposes. (2013, March 23, 2013). Retrieved March 21, 2013, from http://beta.congress.gov/bill/113th-congress/house-bill/1295
James, J. (2012). Health Policy Brief: Workplace Wellness Programs. In Health Affairs, (pp. 1-5). Washington, D.C.: Robert Wood Johnson Foundation.