The 2.3% medical device levy has been lambasted across the medical device industry as a job-killing tax that will stymie innovation. However, there is still hope for its repeal, according to Bloomberg.
In the past week, the White House stated that enforcement of the employer mandate, a key part of the Affordable Care Act, will be delayed until 2015. The employer mandate will require employers with more than 50 employees to provide a basic level of health insurance. Officials at the White House state that this delay reflects the president’s desire “to implement the ACA in a careful, thoughtful manner.”
It’s unlikely that business leaders will be satisfied with this small amount of breathing room. The National Retail Federation is pushing for an employer mandate for companies with more than 100 full-time employees. By announcing its willingness to bend on this mandate, the White House may be signaling an internal weakness.
The Advanced Medical Technology Association (AdvaMed) has long-held a grievance with the Affordable Care Act. The excise tax has been decried as an an inefficient, bureaucratic measure that will gut profit margins at some of America’s most productive medical device companies.
Making a change this late in the game means that Obamacare is under fire. If the White House is willing to make concessions on the employer mandate, trade associations may still be able to repeal the medical device tax.