Medical Device Tax Costs 1,000 Jobs

December 1, 2011
43 Views

In a cost cutting move, medical device-maker Stryker Corporation recently announced plans to lay off 1,000 workers in advance of the impending medical device tax. By reducing its workforce by 5%, Stryker hopes to save $100 million annually to offset the 2.3% tax on medical devices starting in 2013.  The Obama administration hopes the tax will raise $20 billion in tax revenue from 2013 to 2019 to fund the Patient Protection and Affordable Coverage Act.

In a cost cutting move, medical device-maker Stryker Corporation recently announced plans to lay off 1,000 workers in advance of the impending medical device tax. By reducing its workforce by 5%, Stryker hopes to save $100 million annually to offset the 2.3% tax on medical devices starting in 2013.  The Obama administration hopes the tax will raise $20 billion in tax revenue from 2013 to 2019 to fund the Patient Protection and Affordable Coverage Act. An earlier study estimated job losses due to the new excise tax will be in excess of 43,000 – or more than 10% of those employed in the industry.  The United States has been shedding high paying manufacturing jobs for several decades.  Jobs in the medical device industry, which pay an average of around $80,000 per year, will be hard to replace.

   

You may be interested

Where Is The Balance? Pushing Back Against Consumer Health Tech
eHealth
3 views
eHealth
3 views

Where Is The Balance? Pushing Back Against Consumer Health Tech

Larry Alton - August 18, 2017

When Republican Congressman Jason Chaffetz glibly remarked that Americans struggling to afford insurance should choose between that and their smartphones,…

What to Look for in Patient Solutions Software
eHealth
365 views
eHealth
365 views

What to Look for in Patient Solutions Software

Robert Cordray - August 17, 2017

The medical sector is one area where technology has had a significant impact, largely by providing tools that simplify many…

Can Natural Remedies Like RediCalm Decrease Stress and Anxiety?
Wellness
2 views
Wellness
2 views

Can Natural Remedies Like RediCalm Decrease Stress and Anxiety?

Ryan Kh - August 16, 2017

According to research from the National Institute of Mental Health, anxiety disorders are the most common mental illness in the…