Business

Local medical device companies still wary about new tax, survey finds

Executives at local medical device companies remain uncertain that a projected increase in the use of the devices will offset the costs of a new medical device tax levied by the Affordable Care Act, which is also known as Obamacare.

Massachusetts Medical Device Industry Council

Tom Sommer

The uncertainty was a finding of a survey commissioned by the Massachusetts Medical Device Industry Council, which is holding its annual conference Wednesday at the University of Massachusetts Boston. The survey’s findings are being presented at the conference.

Advertisement

According to the council, only 8 percent of survey respondents believe the jump in new patient sales will offset the device tax.

Last month, President Obama announced that 8 million people had signed up for health insurance under the Affordable Care Act. In theory, more people with health insurance should translate into higher sales for the medical device industry.

The medical device tax, which went into effect at the beginning of 2013, is projected to raise $2.3 billion a year, said the council.

The purpose of the tax is to help subsidize insurance under the health law.

In a statement, council president Tom Sommer said: “Another year has now passed as the medical device sector learns to live under the new health care reform rules and impacts. Our device companies, which contribute thousands of jobs and millions in economic activity to our state, have been doing the best they can under challenging circumstances.”

Advertisement

There are indications that the Affordable Care Act may be pushing research-and-development spending lower as companies use more offshore labor, the council said.

The survey commissioned by the council was conducted by Kadence International in March and April. Survey findings were drawn from a 10-minute online questionnaire filled out by 119 medical device executives.

According to the council, its membership is made up of more than 350 manufacturers, suppliers, research institutions, and academic health centers in the medical-device field. The council’s mission is to promote the interests of the Bay State’s medical device sector.  

Chris Reidy can be reached at reidy@globe.com.
Loading comments...
You're reading  1 of 5 free articles.
Get UNLIMITED access for only 99¢ per week Subscribe Now >
You're reading1 of 5 free articles.Keep scrolling to see more articles recomended for you Subscribe now
We hope you've enjoyed your 5 free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.