Monday, October 26, 2009
House Lawmakers Propose Lower Fees on Medical Device Makers
It was reported late on Monday that House Lawmakers will propose a $20 million dollar fee on medical device makers. This would whittle down the $40 million that was original proposed by the Senate Finance Committee. The lower fee is a result of some of the major players like Medtronic, St. Jude and Johnson and Johnson furiously lobbying and throwing millions of dollars at Congressional leaders. It's always entertaining when you read that the industry is crying foul, claiming that this tax will hurt innovation. Recently, as far as the spine industry is concerned, how much innovation have we really seen? Under the House legislation, the tax would not kick in until 2013. The difference between this legislation and the Senate's is that the tax will be scaled, meaning that legacy companies will be paying disproportionately to start-ups or early growth stage companies.