MedReps Career Center: Medical Sales News

New report finds ACA will not affect medical device jobs

Sep 27, 2012 12:27 PM
A new report by the Center on Budget and Policy Priorities claims that the 2.3 percent medical device excise tax set to go into effect at the end of the year will not have a negative impact on thousands of medical equipment sales jobs.

The report said that industry lobbyists are distorting and overstating the facts about the tax, which is part of the Affordable Care Act.

In an editorial to the Syracuse Post-Standard, Martin Rothenberg, president and chief executive officer of medical device manufacturer Glottal Enterprises, said that the center's report is accurate in stating that the tax will not cause medical device companies to shift production overseas and lay off workers.

"In fact, since approximately half of our sales are outside the United States and therefore exempt from the tax, the tax on U.S. sales would be covered by a price increase of about $4," Rothenberg wrote. "If our new device proves effective and we market it effectively, this small increase in cost will have zero effect on sales."

A 2011 study financed by the Advanced Medical Technology Association stated the tax would force 10 percent of manufacturing to be moved offshore, which would lead to the loss of 43,000 medical device jobs

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