Finance Committee Set To Vote On Baucus Bill Tuesday
Posted
Daniel Riordan-driordan@timesuniononline.com
A vote is expected in the Senate Finance Committee Tuesday regarding Senator Max Baucus' health care bill that was crafted last month.
Of concern to local businesses and residents is a proposed $4 billion annual tax of the medical device makers industry.
Companies like Biomet, DePuy and Zimmer would pay the government based on their share of the market.One-third of the $32.5 billion global orthopedic industry is headquartered in Warsaw. That includes 60 percent of the global hip and knee replacement market, according to a Biocrossroads report.
Reaction to the proposed tax was swift with Biomet's Bill Kolter calling it a "tax on innovation."
Politicians soon got on board to oppose the bill. Indiana 3rd District Congressman Mark Souder (R) along with 2nd District's Joe Donnelly (D) both came out in opposition of the bill as did other politicians from Indiana, Minnesota and Massachusetts, all three home to medical device manufacturers.
Last week, the bill was buoyed by a congressional budget office report stating the bill would cost $829 billion over 10 years, but would also cause the federal deficit to shrink by $81 billion.
According to a Dow Jones newswire story today, Advamed is dealing in negotiations with the finance committee to try and reduce the device makers tax from $40 billion over 10 years to $15 billion.
In the story, a representative from Advamed, a lobbying group for medical device makers, declined to comment.
Thursday night, Senate Finance Committee member Jon Kyl (R-Ariz) made a motion to strip the tax from the bill. That motion was voted down 13-10.
The senate finance committee is expected to meet at 10 a.m. Tuesday.
