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.