The healthcare industry will soon face record high tax increases, and medical device manufacturers, like C.R. Bard Inc., will be hit especially hard.
The medical device industry provides 63,400 high-paying jobs in New Jersey, and contributes $12.6 billion to the state's economy. That is all at risk starting January 1, 2013 as the 2.3% Menendez medical device tax, a funding source for the Affordable Care Act, will go into effect.
Senator Kyrillos toured New Jersey based medical device manufacturer C.R. Bard Inc. today in New Providence to see first-hand how this new tax, among others, will affect their business and service to the consumer.
"This tax will effectively diminish the ability of medical device manufacturers, like C.R. Bard, to innovate and produce quality medical products for their consumers," said Joe Kyrillos.
"Companies will be forced to raise prices in order to remain solvent due to this tax. That increase in price will then be passed along to the consumer in the form of more expensive health insurance, or more out-of-pocket healthcare spending. This tax will also greatly diminish the amount of money the industry will be able to set aside for research and development, making us less competitive and advanced in the global marketplace.
"Our healthcare spending as a country already far surpasses what it should. We need real reform that deals with the most basic problems of our healthcare industry. Senator Menendez is clearly mistaken if he thinks that higher taxes within a convoluted matrix of new laws and regulations is real reform."
A May 2012 study by the Pacific Research Institute found that medical research and development will decrease by nearly $2 billion as a result of this tax. Another study, produced by the American Action Forum, found that this tax will force the medical device industry to decrease its workforce by up to 47,100 people, or 10% of the entire workforce.
(Source: ATR.org: "Obamacare Excise Tax will Keep Medical Devices out of Patients' Hands' http://atr.org/obamacare-excise-tax-medical-devices-patients-a7023)