Obamacare threatens to cripple the American medical device industry

Repeal it! Obamacare is forcing the American medical device industry out of business.

The 2010 law imposed a crippling 10-year, $20 billion tax on revenues β€” not on profits β€” earned by companies that make medical devices, such as catheters, artery-clearing stents, scalpels and pacemakers. The tax is prompting American companies to shed jobs, move factories overseas and reconsider niche-market research projects, said Paulson, whose district include medical device companies.

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Another ObamaCare Glitch

Another ObamaCare glitch.

The Patient Protection and Affordable Care Act offers “premium assistance”β€”tax credits and subsidiesβ€”to households purchasing coverage through new health-insurance exchanges. This assistance was designed to hide a portion of the law’s cost to individuals by reducing the premium hikes that individuals will face after ObamaCare goes into effect in 2014. (If consumers face the law’s full cost, support for repeal will grow.)

The law encourages states to create health-insurance exchanges, but it permits Washington to create them if states decline. So far, only 17 states have passed legislation to create an exchange.

This is where the glitch comes in: ObamaCare authorizes premium assistance in state-run exchanges (Section 1311) but not federal ones (Section 1321). In other words, states that refuse to create an exchange can block much of ObamaCare’s spending and practically force Congress to reopen the law for revisions.

The Obama administration’s solution? Ignore the law as written.

I have a better idea: Repeal the damn thing!

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