Thursday, September 17, 2009

Killing Innovation and Reforming Health Care

I just read this morning, that the Health Care proposal coming out of the finance committee; contains a $40 billion dollar tax on the Medical Device industry. So, I dug in deeper. Turns out it is $4 billion dollars a year for the next 10 years, it is on all medical device manufacturers with revenues over $5 million dollars and it is to be based on "relative market share".

Some background, the medical device industry in the U.S. is just less than $100 billion; that means this is a greater than 4% tax on some of the most innovative companies in the United States. Will already having a high barrier to entry through the FDA 510k process and the device registration fees required by the FDA; is this really the smartest tax to apply to our economy--or, as David Auth, a Medical Device inventor and pioneer, states, "Our government rewards dummies and punishes geniuses".

Some references for more context and reference:
New health propsoal is industry's favorite so far. -- AP, Yahoo News
Finance Committee Proposal -- Max Baucus, Senate Finance Committee
Medical Device Pioneer David Auth Seethes Over $40 Billion Industry Tax Idea, FDA Delays

Market Size References [1] and [2] and FDA Annual Device Registration Fee Reference [3] and to even create a device for the market FDA 510k Fee [4] and don't forget the 10's and 100's and of thousands and even millions of dollars to create FDA approved products [5]

Medical Device Manufacturers Association


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