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View Diary: Updated: Leave the Medical Device Tax Alone (15 comments)

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  •  I diagree. Read the CPBB report I linked to above (0+ / 0-)

    Especially the section labelled "Tax Will Have Minimal Effect on Consumers".  

    To be free and just depends on us. Victor Hugo.

    by dizzydean on Mon Oct 14, 2013 at 02:10:09 PM PDT

    [ Parent ]

    •  I agree, it will be "minimal" effect (0+ / 0-)

      I'm sure they define a 3-5% cost increase as "minimal". The question remains though:  what's the point?  You're still making care more expensive for everyone.

      •  Again, read what they say--from what you say (0+ / 0-)

        you have not.  Here, I'll cut and paste it for you:

        The effect of the excise tax on consumers’ costs for health care and health insurance will be minimal and will be swamped by other factors.  Spending on taxable medical devices represents less than 1 percent of total personal health expenditures, so a small increase in their price would have an almost imperceptible effect on health insurance premiums.

        Device manufacturers generally do not hold enough market power to pass on the entire excise tax to consumers through higher prices.  For some common medical devices (for example, heart valves and hip and knee replacement parts), buyers have several available alternatives and can negotiate for a favorable price.  For other products, manufacturers may not be able to pass on the full tax to consumers because treatment of the health condition is elective or physicians can select other treatment options.[24]>

        To be free and just depends on us. Victor Hugo.

        by dizzydean on Mon Oct 14, 2013 at 02:59:43 PM PDT

        [ Parent ]

        •  How does less than 1% fund anything? (0+ / 0-)

          You don't see the logic of that?

          I'll take you at your word, that the medical device tax is less than 1% of all health care spending.  So how does that fund healthcare?

          My point still stands that the tax will only make care more expensive.  Maybe not by much, but costs won't go down - which is the real goal.

          So less than 1% of costs is scraped together and used for subsidies?  It won't cover much.

          You said the tax would raise $26 Billion over ten years, so $2.6 Billion per year.

          Total US spending on healthcare is currently about $2.5 Trillion.  $2.6 Billion is 0.1% of that.

          The tax does absolutely nothing, it isn't worth arguing over.  Let the GOP have it as their "win" and move on.

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