recommended reading

The Medical Device Industry Is Trying to Turn the Government Shutdown to Its Advantage

A government shutdown isn’t good for business: It hurts confidence and dings the bottom line. But one industry spent the weekend trying to paint a silver lining on a dark cloud: Medical device makers want the engine of a spending compromise to be a gift to their shareholderes.

Over the weekend, Republicans in the House rejected an agreement that would avoid a government shutdown. But in an attempt to save face with conservative members, they passed a bill that would impose a one-year delay on new health-care marketplaces that will provide low-income Americans with affordable health insurance. It also included a repeal of the law’s 2.3% sales tax on medical devices, which is expected to raise $30 billion over the next decade to finance the program.
Neither President Obama nor the Senate is likely to accept any delay to the implementation of the health care law. It’s also unlikely they’ll support the repeal of the medical devices tax, part of a suite of similar concessions delivered by other health care stakeholders from pharmaceutical companies to insurers.

But medical device lobbyists are eager to point out that unless  House Republican leadership blinks first and allows a clean spending bill to pass with Democratic votes, they’ll want something in a final deal to point to as a win for their side, specifically something related to the health care law.

The medical device industry and its $29 million-a-year lobbying coalition AdvaMed hope that a bipartisan push to repeal the device tax can be the pivot point for a compromise. Repeal of the tax has the backing of liberal lawmakers in Massachusetts and Minnesota, where device companies like Boston Scientific and Medtronic are headquartered. And, like any tax cut, it has the backing of conservatives: Seventy-nine Republican lawmakers signed a letter advocating a repeal of the tax earlier this year that was secretly authored by AdvaMed.

Today’s chasm may be too wide, but just as corporate tax giveaways helped lead to a fiscal cliff compromise, Washington often finds private interests easing the way to compromise.

Read this story at Quartz.

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download

When you download a report, your information may be shared with the underwriters of that document.