With healthcare reform projected to cost $950 billion, the pharma, device and hospital industries have generally consented to help fund the changes - in the device industry's case, to the tune of $20 billion over the next decade, which will be realized through an excise tax proposed to be implemented in 2011.
Now AdvaMed is pushing on behalf of the industry to lock in that $20 billion as a cap, reports Reuters.
"We understand we're obligated for our $20 billion, but no more than that," said James Mazzo, who was recently appointed AdvaMed's Chairman. Mazzo appears to be taking a strong stance against negotiations on the agreed-upon tax, which may be more meaningful as the scope of healthcare reform appears to be shrinking; the fees were initially justified by the benefit companies would receive from additional insured patients. AdvaMed is also lobbying for reform legislation to include tax exemptions for small companies, who could be heavily burdened by the tax.
While AdvaMed holds its ground, this week the Obama administration is working hard to revive its floundering healthcare package. The president has made three healthcare speeches this week, and Congressional leaders are working to finalize some changes to the legislation, including subsidies to help Americans buy insurance and federal aid to state-based Medicare programs. The CBO is in the process of scoring these changes as Democratic leaders attempt to collect enough votes to pass a bill. Right now, it is expected that the House will attempt to pass the Senate's version of the bill from last year, with a companion bill to immediately follow that will make certain changes to the Senate bill. The companion bill will have to pass with a simple majority in both chambers.
