Way to go geniuses, how to slow the economy down

[TheSpecialist]

From absurdity to reality? Medical device tax jolts Invacare CEO Malachi Mixon MedCity News

[spence]

I think the counter argument is that the insurance and drug companies have all made concessions to contribute to health care reform, and the medical device industry resisted. While the example you linked to is a pretty low margin business, on average their margins are pretty big.

They did negotiate a dramatic decrease in the tax as well as a delay until 2013, which does give companies time to compensate.

While I do agree this is a disencentive towards some businesses, it also reflects the systemic problem that health care really is.

I can't wait to talk to Randy (a CIO at a medical device company I know) about this

-spence

[TheSpecialist]

What sucks is those workers are paying the price. No more matching contributions or incentives. Companies up here are threatening to move out of the country which will mean even less jobs. I don't know about you but I know I don't want any friggin medical device that goes in the body that is made in China.

[spence]

It's a complex issue. I'd think that there are other side benefits which come from the short-term challenges, I've read that a whole reuse industry will be helped by this, and products such as those that I help sell -- which enable improved manufacturing productivity -- allow companies to do more will less.

It certainly sucks if workers are impacted, but I wouldn't base policy off of one story. Any big picture change is going to hurt some people somewhere, and this companies position is going to be influenced by many factors.

Perhaps part of the reason their margins are so low is that they've resisted market pressure to innovate their own business model.

Old school companies often do not like to change.

-spence

[buckman]

It is a complex issue.. but let me try to simplify it.

They didn't pay off the right people
This will only effect people that make over 200K a year ( in Spence's dreams)
It will cost everyone more
The bill was never designed to control cost, lower taxes or create jobs.