updated: 4/3/2013 1:24:37 PM
Indiana Senator Dan Coats believes bi-partisan support is building to repeal a $30 billion tax on medical device manufacturers. Last month, the Senate voted 79-20 for a non-binding amendment to repeal the 2.3 percent tax, which is part of the health care reform law. The tax hits Indiana hard. The Indiana Business Research Center estimates the sector employs approximately 20,000 workers, more than 40 percent of all life sciences jobs in the state. In a Studio(i) interview, Senator Coats says the Senate vote was more than symbolic.
Bloomington-based Cook Medical has stated the tax will cost the company $20 million. President Kem Hawkins says it will also slow down the development of new products. The company has halted U.S. expansion because of the tax.
Supporters of the tax have said medical device makers will make the money back because of a windfall in the form of millions of people gaining health insurance coverage. Hawkins contests the argument, saying the company's products are already being used on uninsured patients.
The medical device tax is part of the Affordable Healthcare Act.
Source: Inside INdiana Business