The president of Bloomington-based Cook Medical tells Inside INdiana, “Despite ‘considerable disappointment’ that the fiscal cliff deal did not include a delay in a new medical device tax, the company will continue efforts to lobby lawmakers and the public.”
According to Kem Hawkins, the tax will cost Cook $20 million this year and slow down the development of new products. The company has halted U.S. expansion because of the tax.
Hawkins says that Cook is large enough to weather the tax, but many smaller companies may have more trouble.
He also contests the argument that medical device makers will make up for the tax because of a windfall in the form of millions of people gaining health insurance coverage. Hawkins says its products are already being used on uninsured patients.
The medical device tax is part of the Affordable Healthcare Act.
Medical Device Manufacturers Association Statement
Washington, D.C. — Mark Leahey, President and CEO of the Medical Device Manufacturers Association, issued the following statement regarding the fiscal cliff deal and the failure to repeal the medical device tax:
“While MDMA is disappointed that a deal was not reached to repeal the medical device tax, we are heartened by the bipartisan and growing support in both the House and Senate to end this policy. There is wide recognition that the device tax has already led to job losses and that it is impacting patient care, and this will continue if Congress doesn’t act quickly in 2013. MDMA and our members remain committed to repealing the medical device tax so the United States can continue to lead the world in medical innovation, but the real world impact of this job-killing policy is unfortunately already being felt across the country.”
Source: Cook Medical, Inside INdiana Business, Medical Device Manufacturers Association