A new excise tax will be levied on medical devices beginning Jan. 1, and the impact will be significant for medical device companies with a Memphis presence.
Large players like Wright Medical Technology Inc. and fledgling outfits like Arrowhead Medical Device Technologies Inc. are preparing for the 2.3 percent pinch on each device sold in the U.S., including pacemakers and stents, defibrillators, artificial joints, chemotherapy delivery systems, surgical tools and X-ray machines.
The Supreme Court ruled to uphold the Affordable Care Act on June 26, leaving the new excise tax in place on medical devices. The tax, which is estimated to raise $29 billion over the next 10 years, is one of many taxes and fees imposed by Congress to help offset the cost of subsidizing insurance coverage for more than 30 million people.
For more information on market changes and projections, please register free at idataresearch.net