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Device makers plan to offset tax burden by raising prices | MassDevice.com On Call

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MassDevice On Call

MASSDEVICE ON CALL — Most small medical device companies may deal with the added burden of the impending 2.3% medical device tax by passing the cost onto customers, an industry survey found.

Of 180 device industry executives surveyed, about 75% of which represent companies with fewer than 50 employees, more than half reported that they plan to increase prices for their products in order to fully or partially offset the effects of the levy.

The tax continues to be a point of contention in the industry, with advocates like AdvaMed and executives like Cook Medical chairman Steve Ferguson arguing that it represents a burden on jobs, innovation and patient access to life-saving technologies.

"Less than 17% of respondents indicated they would reduce headcount to absorb the excise tax’s impact," according to the survey, conducted by the Emergo Group. "Increasing prices, lowering production costs and investing in less research and development all ranked higher than layoffs as options for dealing with the tax."

AdvaMed recently revealed plans to frame repeal efforts as tax reform, hoping to divorce the industry’s beef with the legislation from arguments surrounding health care reform.

"Repealing the device tax is the 1st down-payment on much-needed tax reform," AdvaMed president Stephen Ubl said during a conference call with reporters this week. "The device tax had little to do with the Accountable Care Act, except that it was added to obtain $20 billion to help pay for the bill."

Medical device tracking stuck in bureaucratic limbo

A proposed Congressional solution to the lack of universal tracking for medical devices has languished in regulatory limbo with no progress reported since the legislation went to the Office of Management & Budget for review last July, Politico reported.

Cellnovo launches mobile-connected diabetes management

London-based Cellnovo announced the commercial launch of what it calls the world’s only mobile-connected diabetes management system, according to a press release.

VCs among top donors to President Obama’s campaign

Venture capitalists figure prominently among President Barack Obama’s top donors, while buyout investors seem more likely to invest in GOP hopeful Mitt Romney, PE Hub reported.

1 in 3 doctors wavers on whether to disclose serious medical errors to patients

1 in 3 doctors surveyed responded that they didn’t completely agree that disclosing serious medical errors to patients is always the right thing to do, according to a survey published in the February issue of Health Affairs.

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