First Device Taxes Paid. Spine likely to benefit (Orthopedics This Week)
The government’s take on the first bi-monthly payment of the medical device tax came in at about $97 million. That’s the report from AdvaMed on Tuesday, January 29, 2013. Will orthopedic device makers make up the cost in higher sales?
Wells Fargo’s analyst Larry Biegelsen recently took a crack at answering that question and concluded that spine could be a likely winner.
Twice-monthly deposits of the 2.3% tax on device makers’ revenue are designed to help pay for changes in the federal health care overhaul. Proponents of the tax claim device makers will recoup their money by selling more devices to 30 million new patients with insurance to pay for their new hips, knees, spinal implants and myriad other devices implanted in humans. Opponents say since most their device sales go to those over 65 who are already covered by Medicare, they won’t see any meaningful bump in sales.
Only time will tell who is right.
More Insured = Higher Utilization
Larry Biegelsen and his team looked at the impact on orthopedic sales with the newly insured by analyzing two studies and looking at federal data.
The first study was out of...
