The Affordable Care Act and the Negative Impact on Medical Device Manufacturers

May 25, 2012 | no comments

The Affordable Care Act takes effect on January 1, 2013, with significant financial ramifications for Medical Device companies.  The medical device manufacturers want to eliminate a 2.3% excise tax included in the federal healthcare overhaul.  The tax would cost the manufacturers about 20 billion during the next decade which ultimately could cost the United States tens of thousands of jobs.  Especially affected would be small and mid-size companies developing new technologies.  The Stryker Corporation (, a medical device maker, has already laid off workers in anticipation of the new excise tax. 

Mark Leahey,  President & CEO of the Medical Device Manufacturers Association ( has stated “that the MDMA has consistently opposed the new excise tax on medical devices as ill-conceived because it will undoubtedly have a detrimental impact on patient care, healthcare costs, innovation and job creation.” Leahey added ” there is no question this new tax will impose significant burdens on medical technology companies, stifle innovation and growth, unnecessarily drive up the cost of healthcare for millions of Americans, and will impair patients’ access to potentially life-saving technologies.” 

The U.S. leads the world in medical device manufacturing.  The jobs that are lost or not created from the healthcare overhaul will derail the recovery of the U.S economy and not provide the “free” healthcare some think they will be receiving. 


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