We have written many blogs on the medical device tax and thought we have covered almost angle on this issue. However, we thought this article in FierceMedicalDevices brought a new strategic twist to the discussion. There has been a concerted effort by the industry to repeal the 2.3% medical device revenue since it was introduced in the Affordable Care Act.
Much of the industry’s efforts have been focused on lawmakers, but now they are taking their message directly to workers. The companies want to communicate how the tax could impact them and they are being educated on how they can support the repeal effort. Boston Scientific, Smith & Nephew and Welch Allyn blame the tax for the thousands of positions slashed over the past year.
President Barack Obama and proponents of the tax, argue that companies will more than make up the difference when 30 million previously uninsured patients become potential clients within the next year. But the industry points out that those patients are likely to be young and unlikely to need knee replacements and vascular devices, giving them little in return for the tax.
AdvaMed has led an aggressive push to repeal the tax and the article states that the underlying theme of their push to industry employees is job losses. AdvaMed recently met with employees at AngioDynamics’ to tout their “Repeal the Tax” message. Just where AdvaMed will take its worker-targeted message next is unclear, but it seems evident that this strategy will be used again down the road.
If you’re in the medical device industry, what are your thoughts on this new tactic in the battle to repeal the medical device tax? How receptive will you be to this message? Do you think the underlying message being pushed by management is repeal the tax or risk losing your job?
Photo Credit: Daehyun Park