Calling it the latest example of how Obamacare is stifling economic development, Congressman Tom Reed is speaking out about the recent decision by Cook Medical to scrap plans for new factories in the United States. "The message is clear; tax increases on manufacturers cost manufacturing jobs and push jobs overseas," Reed said.
The medical device tax is one of the many tax increases set to take effect in 2013 as part of the Patient Protection and Affordable Care Act (PPACA), popularly known as Obamacare. Reed is urging the Senate to act on the Health Care Cost Reduction Act, which would repeal the 2.3 percent tax increase on medical devices including defibrillators, pacemakers and prosthetic limbs. Reed is part of a bi-partisan group of co-sponsors of the bill, which passed the House of Representatives last month.
Cook Medical had originally planned to build three new factories in small Midwest communities with each employing up to 300 people. According to media reports, the company will be forced to halt these plans upon implementation of the new tax in 2013. "In reality, we're not looking at the U.S. to build factories anymore as long as this tax is in place. We can't, to be competitive," a Cook spokesperson told Fox News.
"Obamacare does little to protect patients and is making health care more expensive," Reed said. "Health care premiums continue to rise at a rate much higher than inflation and jobs are being lost. Obamacare treats health insurance symptoms but fails to treat the true problem which is the disease of rising health care costs," Reed said.
Reed supports repealing the PPACA and replacing it with patient-centered reforms. He supports including requiring coverage for pre-existing conditions, allowing children up to age 26 to be carried on a parent's policy and covering preventive health care services such as mammograms in any replacement legislation.