Opinions about the recently passed healthcare reform legislation are all over the place. One recent article in particular demonstrates this with specific reference to device manufacturers, manufacturers in general, and pharmaceutical manufacturers.
The National Association of Manufacturers and the Medical Device Manufacturers Association say the new healthcare reform legislation signed into law today will negatively hinder business competition, slow the recession recovery and negatively impact employee healthcare options.
That’s from the opening paragraph of a story appearing in Area Development Online out of the Washington, DC area. It gives a lot of air time to the many specific worries by the National Association of Manufacturers. In a slight contrast, the Medical Device Manufacturers are mostly worried about one thing: the $20 billion device tax provision. That tax has a two to three year fuse on it so device manufacturers are hoping something can be done in advance of 2013. From the news story:
“If eliminating the tax is not possible, structuring it to provide relief for smaller companies is critical. Under the current structure, many companies will owe more in taxes than they generate in profits, requiring companies to layoff employees, cut R&D budgets and slow the development of new therapies that will improve the quality of care for all Americans. Moving forward, these issues must be addressed before the tax takes effect in 2013,” the group stated in a statement.
But interestingly, the Pharmaceutical Research and Manufacturers of America (PhRMA) has an entirely opposite point of view. They said the bill is …an “important and historic step” toward expanding high-quality, affordable health care coverage. I know a hip replacement is not a pill, but can PhRMA and the Medical Device Manufacturers Association both be right? What’s your opinion? Will the legislation make manufacturing healthier?
The source article, entitled Manufacturing Groups: Healthcare Bill Not A Good Remedy For Business, can be seen here.