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January 06, 2017 11:00 PM

Letters: Medical device tax deserves a permanent suspension

Modern Healthcare
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    Regarding the article, “Think hard before repealing ACA taxes, some Republicans warn” (ModernHealthcare.com Dec. 15): I want to categorically state that the medical technology industry never supported the ACA's medical device excise tax.

    From the beginning, we recognized that this was an ill-conceived policy that would lead to negative impacts on jobs, patient care and innovation. And we were right. In order to pay for the tax, companies were forced to curtail investments in personnel, R&D and other infrastructure projects. Smaller medtech companies, where many breakthrough advancements occur, were especially hard hit by the tax—to the point where some had to shutter their operations.

    Further, unlike other stakeholders, we never subscribed to the theory that there would be a windfall from expanded ACA coverage for the medical technology industry. For the most part, devices—think pacemakers and artificial hips—are geared toward an older population already covered by Medicare.

    Congress has proven time and again that they agree the device tax was ill-advised. Solid bipartisan majorities in both the House and Senate are on record in favor of repealing the tax, and both chambers strongly supported the two-year suspension of the tax that went into effect at the end of 2015.

    Since suspension, medical technology companies have been able to reinvest resources that would have gone to the tax into new hiring, R&D, restarting shelved projects and other capital improvements. This benefits patients, the economy and American innovation. That is why we are urging the new Congress to repeal this anti-jobs, anti-patient and anti-innovation tax now, so companies can plan longer term to ensure these benefits continue.

    Scott Whitaker

    President and CEO Advanced Medical Technology Association

    Medicare beneficiaries are the 'white mice' in some alternative payment models

    Regarding the article, “Medicare offers hospitals cash to rev up cardiac rehab participation,” (ModernHealthcare.com, Dec. 22): Critical questions remain on whether the mandatory nature of such models would be effective in garnering patient participation; whether such models pose harm for patients; and why the statutory elimination of any kind of appeal process is warranted, effective, or retarding to beneficiary participation? Beneficiaries are not and have not been alerted of this. Let us not forget that the Medicare beneficiaries are the “white mice” in these experimental models.

    Ted Giovanis Highland, Md.

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