According to Benner, it generally takes between four and seven years for a device to go from initial concept to commercial development—a time when a manufacturer could go through $60 to $100 million in development costs, with no profits coming in. “An excise tax will drastically affect these kinds of companies,” he said.
Explore This IssueNovember 2012
Raising the cost and timeline of developing new devices could mean that clinicians outside the U.S. might have tools available that are too expensive to market within the country. “Today, the impact might be a higher jobless rate, but down the road, there may not be the same level of technology and devices available,” said Benner.
While the future of the ACA is still uncertain, it’s unlikely that this particular provision will be repealed before going into effect at the beginning of the year.