ObamaCare’s Medical Device Tax Is Preventing Invacare From Hiring New Workers

While liberal Democrat Senator Sherrod Brown stays back in Washington, today President Barack Obama is bringing his campaign to Elyria, Ohio which is remarkable given that his job-killing policies have prevented businesses in this community from hiring new workers.

President Obama and Senator Brown’s burdensome healthcare bill contained a harmful medical device tax that is expected to kill 45,000 jobs in the industry.  This tax specifically hits Elyria’s Invacare, who has said that ObamaCare is preventing them from hiring new workers.

As the Washington Post reports:

“[I]n the short run, some of his policies could cost existing jobs, especially health-care reform, if it is enacted. One of the few large businesses that has prospered in Lorain County in recent years has been Invacare, a maker of home medical devices, such as walkers and wheelchairs… The company has 1,300 employees in Lorain County but has stopped hiring in anticipation of a tax on medical devices that was proposed to help pay for the president’s health-care reform plan.” (Michael A. Fletcher, “Assessing Obama’s Promises Of Jobs In A Hub Of Manufacturing,” The Washington Post, 1/22/09)

Notably, businesses throughout Ohio – including AK Steel, White Castle and American Electric Power – have criticized this job-killing healthcare law.

“It’s ironic that after President Obama and Senator Brown rammed their $1.76 trillion healthcare bill through Washington – which forced Elyria’s Invacare to stop hiring new workers – the President would come to Lorain County for a job-training program,” said National Republican Senatorial Committee (NRSC) spokesman Jahan Wilcox.  “After six years of Brown’s liberal tax-and-spend policies, it’s clear Ohioans needs a pro-jobs, pro-energy Senator.” 
BACKGROUND …

Obama & Brown’s Healthcare Law Is Preventing Companies In Lorain County From Hiring New Employees

WASHINGTON POST:  “[I]n the short run, some of his policies could cost existing jobs, especially health-care reform, if it is enacted. One of the few large businesses that has prospered in Lorain County in recent years has been Invacare, a maker of home medical devices, such as walkers and wheelchairs… The company has 1,300 employees in Lorain County but has stopped hiring in anticipation of a tax on medical devices that was proposed to help pay for the president’s health-care reform plan.” (Michael A. Fletcher, “Assessing Obama’s Promises Of Jobs In A Hub Of Manufacturing,” The Washington Post, 1/22/09)

CRAIN’S CLEVELAND BUSINESS:  “The law includes a 2.3% excise tax on the sale of all medical devices except for consumer goods, such as contact lenses and hearing aids. . .Among established medical device companies, Invacare Corp. of Elyria, the world’s largest wheelchair maker, has been a vocal opponent of the tax. Invacare CEO A. Malachi Mixon III in a January interview with Crain’s went so far as to say the tax was the equivalent of ‘throwing a hand grenade in the mi ddle of the health care economy.’” (Chuck Soder, “Tax On Medical Device Manufactuers Could Be Taxing,” Crain’s Cleveland Business, 3/29/10)

COLUMBUS DISPATCH:  A tax on medical devices and equipment tucked into the 2,400-page 2010 Patient Protection and Affordable Care Act illustrates the negative impact the legislation is already having on the U.S. economy. Quite simply, nothing is free. … In Ohio, about 20,000 workers are employed by medical-device and equipment manufacturers. A few large companies are affected, including Cardinal Health in Dublin and Invacare in Elyria. But industry-wide, 80 percent of these businesses have fewer than 50 employees. Since the tax is on all revenue, not profits, small companies are particularly worried that they’ll be put out of business by it.  (Editorial, The True Cost, Columbus Dispatch, 03/26/12)

Ohioans Continue To Hurt From Brown & Obama’s Job-Killing Healthcare Law

CLEVELAND:  CEO Of University Hospitals Warns ObamaCare “Creates A Larger Burden On The States.” “UH’s Zenty said, ‘Even though it appears more coverage will be provided through Medicaid, that creates a larger burden on the states. And with the state of Ohio’s looming budget deficit, we need to be mindful of how that will be funded.’” (Evelyn Theiss, “Health Care Bill Should Save Cleveland Hospitals Money On Treating Poor, But Exact Amount Unclear,” The Cleveland Plain Dealer, 4/7/10)

CLEVELAND:  Cleveland Clinic Chief Executive Toby Cosgrove Says ObamaCare Could “Stiffle Medical Innovation.” “Cleveland Clinic Chief Executive Toby Cosgrove told a full house at a City Club speech Wednesday he’s concerned that health-care reform could stifle medical innovation. ‘I think we have to worry very significantly about innovation,’ Cosgrove said in response to a question about the effects of health-care reform.  He was referring specifically, he said, to the comparative-effectiveness provision in the law. Comparative effectiveness is shorthand for studying different treatments and paying for those that work.”  (Diane Suchetka, “Cleveland Clinic CEO Toby Cosgrove Talks About Health-Care Reform And More At City Club,” The Cleveland Plain Dealer, 8/19/10)

COLUMBUS:  OH-Based American Electric Power Took A $21 Million Charge From ObamaCare. “American Electric Power said Thursday its first-quarter profit dropped 4 percent as the lingering effects of the recession continue to hurt power demand. … AEP recorded a $21 million charge because of the recently enacted federal health care overhaul. AEP and other companies currently receive a government subsidy to keep prescription drug benefits for retirees. They have been able to deduct their expenses, but that ends in 2013 under the recently passed legislation.” (Mark Williams, “AEP 1Q Earnings Drop 4 Percent,” The Associated Press, 4/29/10)

COLUMBUS:  OH-Based White Castle Predicts ObamaCare Will Consume More Than Half Its Profits. “The White Castle hamburger chain fears that a health insurance reform law adopted earlier this year will put its profits on a downward slide. The Columbus-based family owned restaurant chain – known for serving small square hamburgers called ‘sliders’ – says a single provision in the bill will eat up roughly 55 percent of its yearly net income after 2014.” (Sabrina Eaton, “Ohio Hamburger Chain Says Insurance Reform Will Bite Into Profits,” The [Cleveland] Plain Dealer, 7/4/2010)

• ObamaCare Will Prevent White Castle From Expanding In Ohio. “The financial hit will make it hard for the company to maintain its 421 restaurants, let alone create new jobs, says company spokesman Jamie Richardson. White Castle employs more than 10,000 people nationwide, and more than 1,200 in Ohio.” (Sabrina Eaton, “Ohio Hamburger Chain Says Insurance Reform Will Bite Into Profits,” The [Cleveland] Plain Dealer, 7/4/2010)

CINCINNATI:  Dr. Michael Nauss, Emergency Physician: “The new legislation will impact emergency physicians greatly as newly insured patients find it difficult to find primary care doctors who accept their insurance.” (Parija Kavilanz, “Doctors: A Tough Job Just Got Tougher,” CNN.com, 4/8/10)

WEST CHESTER:  OH-Based AK Steel Holding Corp. Took A $31 Million Charge From ObamaCare. “AK Steel Holding Corp., The third largest U.S. steelmaker by sales, said it will record a non-cash charge of about $31 million resulting from the health-care overhaul signed into law by President Barack Obama.” (“AK Steel Sees $31 Million Charge From New Health Law,” BusinessWeek, 3/23/10)