Included as a measure in the federal health-care reform act, an excise tax set to take effect in 2013 would be imposed on medical devices sold and made in the United States. It is one of many taxes included in the health-care bill to pay for insurance subsidies for 30 million uninsured Americans. <\/p>\n
NAPLES Greg Riemer didn't back out of a deal to acquire a small Florida business to expand his company that makes components for medical devices, even though he knew his profit margin soon may drop. <\/p>\n
MRPC, his family-owned company based in Wisconsin that's been in business since 1921, went forward two months ago with buying ETI Incorporated, a Tampa-area maker of custom silicone injection molding. <\/p>\n
ETI's expansion plans may hinge on what the Senate does this summer with a medical device excise tax set to take effect in 2013. However, the Democrat-controlled Senate isn't expected to repeal the tax like the House did recently. <\/p>\n
Included as a measure in the federal health-care reform act, the excise tax would be imposed on medical devices sold and made in the United States. It is one of many taxes included in the health-care bill to pay for insurance subsidies for 30 million uninsured Americans. <\/p>\n
The Florida manufacturers consortium says the state is a leader for medical device manufacturers with 528 companies, and more component makers. The industry employs more than 20,000 Floridians with an average wage of $63,000. The vast majority of the companies are small firms with 25 or fewer employees. <\/p>\n
Riemer knows with certainty what the trickle-down effect will be if the tax of 2.3 percent on sales revenue not on profits is allowed to take effect in January. <\/p>\n
\"The reality of any tax on a business is it ultimately gets pushed down to some sort of consumer,\" said Riemer, the company president. \"Suppliers like us are asked to take price reductions.\" <\/p>\n
Naples-based Arthrex Inc., which manufactures 6,000 medical devices for minimally invasive orthopedic surgery and achieved more than $1 billion in revenue in 2010, is keeping a close eye on what's happening with the health-care reform act and tax. <\/p>\n
\"We are following the action in both the legislative and judicial branches,\" Jon Cheek, vice president of finance for Arthrex, said in a statement. \"Short of a Supreme Court decision to overturn the entire reform package, we do not expect closure on this until after the November election. Although Arthrex will incur significant cash flow reduction as a result of this tax, we have not changed our assessment of future demand, and therefore remain committed to our growth plans as previously set forth.\" <\/p>\n<\/p>\n
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New federal health-care tax on medical devices concerns Florida manufacturers<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Included as a measure in the federal health-care reform act, an excise tax set to take effect in 2013 would be imposed on medical devices sold and made in the United States. It is one of many taxes included in the health-care bill to pay for insurance subsidies for 30 million uninsured Americans. Continue reading