The 2.3% excise tax on medical equipment kicked in and has already been blamed for hundreds of layoffs.
Looking back at some larger claims we have paid over the years, this tax could be fairly significant. Seeing $100,000 in equipment charges is not at all uncommon for back surgeries and other procedures. This would appear to be another great reason to go out of country to have these procedures done. $2,300 would cover airfare and accommodations.
"The medical device excise tax applies to manufacturers and importers and generally does not apply to individual consumers."
Those attacking our healthcare system will cheer the $300,000 back Surgery bill only costing $40,000 in India, Costa Rica, or where ever else. I think the American workers who used to make the equipment and perform these procedures - who are now out of work - might not agree so much.
How long before this loss of revenue has the TSA screening for people wearing untaxed equipment crossing back over the border? Are you bringing any fruits, vegitablles or untaxed medical devices with you today?
Someone who passed economics might have an interesting time rationalizing the impact of $300,000 in domestic spending replaced by $40,000 in foreign spending and its impact on our economy. I have a feeling we don't really "save" $260,000.