AdvaMed Chief Predicts Device Tax Delay (Orthopedics This Week)
Stephen Ubl, the president and CEO of the world's largest medical technology association, AdvaMed, told investors at a Wells Fargo luncheon on November 26 that he is hopeful that Congress will, in a bipartisan manner, delay implementation of the device tax as a "bridge to repeal."
His comments were reported by a Wells Fargo investor note and confirmed to OTW by AdvaMed.
The Two-Step “Cliff” Solution
Regarding the so called "fiscal cliff," Ubl said the cliff is likely to be avoided in two stages, with a down payment to pass this year (before holiday break) that sets the broader frame work for a longer term solution to be worked out in 2013. A deal on the device tax could occur as part of the fiscal cliff solution.
The fiscal cliff was created by Congress when Republicans and Democrats agreed on tax hikes and spending cuts in exchange for raising the nations' debt ceiling.
According to Ubl, the potential risks for the medical device industry is more on the customer side (i.e., labs, hospitals) feeling the pressure of rate reduction, that could have some incremental impact on pricing.
Device Tax Repeal Uphill Battle
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