Brown’s Medical Device Tax Is Negatively Affecting Companies Throughout Ohio
When liberal Democrat Sherrod Brown voted for Barack Obama’s $1.76 trillion healthcare law, it hit medical device companies in Ohio with a 2.3 percent tax and today Dublin’s Cardinal Health has announced they might restructure their company due to this job-killing tax.
Elyria’s Invacare – which employs 1,700 Ohioans – has also been negatively affected by this tax and stopped hiring new workers in anticipation of this burdensome tax. Additionally, Boston Scientific has said this tax could eliminate 45,000 jobs within the medical device community.
As the Columbus Dispatch reports:
Medical-device manufacturers and their advocates want to eliminate a 2.3 percent excise tax included in the federal health-care overhaul. Industry officials say the tax, which takes effect in January, would cost manufacturers about $20 billion during the next decade. The medical-device industry recorded about $136 billion in revenue in 2008. … Those who want the health-care law repealed by Congress said the tax could stunt medical innovation by leaving less money for research and development. … The tax would affect Dublin-based Cardinal Health’s $1 billion medical-kit business, said Michael Lynch, executive vice president. Cardinal’s earnings as a percentage of sales are in the low single digits, so the excise tax could cause the company to reconsider competing in certain business segments subject to the tax, he said. Cardinal Health employs about 4,400 people in Ohio. (Ben Sutherly, Medical-device makers fight tax, Columbus Dispatch, 05/15/12)
“From Cleveland to Columbus and down to Cincinnati, Sherrod Brown’s healthcare law is killing jobs and stunting medical innovation in the Buckeye State,” said National Republican Senatorial Committee (NRSC) spokesman Jahan Wilcox. “After six years of Sherrod Brown, it’s clear his liberal tax-and-spend policies are not helping Ohio’s economy.
Brown’s Healthcare Law Is Hurting The Medical Industry In Ohio
CLEVELAND: Invacare Has Been A Vocal Opponent Of The Medical Device Tax In ObamaCare. “[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)
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: Cardinal Health Has Said That This Medical Device Company Could Force Their Company To Restructure Their Company. The tax would affect Dublin-based Cardinal Health’s $1 billion medical-kit business, said Michael Lynch, executive vice president. Cardinal’s earnings as a percentage of sales are in the low single digits, so the excise tax could cause the company to reconsider competing in certain business segments subject to the tax, he said. Cardinal Health employs about 4,400 people in Ohio. (Ben Sutherly, Medical-device makers fight tax, Columbus Dispatch, 05/15/12)
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)
And ObamaCare Is Hurting Companies In Ohio
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)
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)