Report reveals device tax killed 28,000 jobs, and could kill 25,000 more

l_img_7431Devicemakers have long complained that their business has been negatively affected by an excise tax placed on their devices by the Affordable Care Act. A think tank has now crunched the numbers on how the tax affected U.S. jobs.

The 2.3% tax on medical device sales resulted in the loss of over 28,000 jobs among devicemakers and and related industries when it was in effect between 2013 and 2015, according to the American Action Forum, which describes itself as a “center-right policy institute.” Health economist Robert Book based his post on U.S. Census Data and tax data from the federal government.

The tax, which is collected as a direct percentage of manufacturer sales, was suspended by Congress for 2016 and 2017. If Congress allows it to resume in 2018, AAF projects that an additional 25,000 additional jobs could be lost by 2021. AAF’s prediction is based on past job losses and lower-than-anticipated tax revenue, which would suggest a reduction in device sales.

By Adam Rubenfire | Modern Healthcare

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About Peter Coffaro 1430 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the medical device industry. As a District Sales Manager for Stryker Orthopaedics, Peter was responsible for managing and directing a regional sales force to achieve sales and profit goals within the Rocky Mountain region. Previously, he was the Director of Sales & Marketing for Amp Orthopedics. In this role, Peter was responsible for planning, developing, and leading all sales and marketing initiatives. Peter is a former orthopedic distributor in the Pacific Northwest. He has also worked with DePuy Orthopaedics as well as Zimmer, and held positions in sales, sales training, and sales management. Peter has an extensive background in organizational development, business development, sales management, negotiating and P&L management. Peter holds a B.S. degree in Biology from Northern Illinois University.

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