One of the many new taxes imposed by ObamaCare
is a 2.3% excise tax on medical device manufacturers. Although this may not seem like much, it could be devastating to small companies working with thin profit margins.
For instance, the Zoll Medical Corporation is one of the leading manufacturers of automated external defibrillators (AEDs). These devices are commonplace in airports, shopping malls, and other public places. Members of the general public can now use to give immediate life-saving electrical shocks to someone suffering sudden cardiac arrest.
Advances in hardware and software have made these devices sufficiently reliable that “Good Samaritan” bystanders with no formal medical training can safely use them. When I worked with TI Security Department we were required to have 8 hours a year of first aid training, and four for the AED from everywhere from inside the board room to inside the corporate jet (not as easy as one might assume)
The AED device itself analyzes the patient’s electrical rhythm and gives voice instructions to the user as to whether and when to safely shock the patient. According to a recent paper in the New England Journal of Medicine, making AEDs widely available to the public could significantly improve the survival rates of cardiac arrest patients.
However, the ObamaCare tax would impose an additional $7.5 million annual burden on Zoll, nearly eliminating their annual profit of $9.5 million. As their CEO Richard Packer
recently explained on a Fox News interview with Neil Cavuto:
PACKER: So, it almost wipes out our profits.
CAVUTO: So, you have a couple of choices here. You cut jobs or send them overseas, or you increase the price of your product, not easy to do.
PACKER: Yes, or cut back on research and development. And our business is built around new science, new clinical trials.
CAVUTO: Or a lot more people die as a result…
I’ve always wanted to buy a simple enough AED to put in the trunk of my car. Zoll sells them
for about &1250, for now. Used AEDs
go for about $800, but I’m not sure I’d want a used one.