Opinions abound when it comes to the 2.3% medical device tax. Most of them negative. But often times, many of these opinions are NOT backed by facts and data.
For example, most medtech professionals would agree that even though more Americans will be insured through the Affordable Care Act (ACA), this will not equate to a windfall for medical device companies. Solid opinion, right? But where’s the data to back this up?
The average age of a patient that receives a heart valve, cardiac stent, and knee implant is 70, 62, and 64, respectively. However, if you compare these ages to the group of uninsured that will become insured under ACA, a stark contrast exists. Eighty percent of uninsured patients are under 45 years old and 88% are under 55, well below the average device user. Only 2% of the uninsured are over 65 years old.
In this interview, Matt Dolan provides us with interesting facts as to why the premise of the medical device tax may not be justified.
Here’s What You Will Learn
- Impact of the medical device industry on the healthcare system and overall economy.
- But aren’t expensive, innovative medical devices responsible for higher healthcare costs?
- Why is the medtech industry already suffering?
- Will medical device companies receive a windfall because more patients will be insured through the Affordable Care Act?
- Real-world example of Massachusetts: Did medical device companies benefit from Romneycare?
- Why smaller medtech companies will be impacted the most by the device tax.
- The negative impact on medical device R&D and the potential consequences for patients.
- Other potential ramifications of the device tax: job losses, decrease in hiring, and a greater emphasis on overseas expansion.
- And much more!
This Is What You Can Do Next
1) You can listen to the interview with Matt Dolan right now:
2) You can also download the mp3 file of the interview by clicking here.
3) Read the following transcripts from my interview with Matt Dolan. Also, feel free to download the transcripts by clicking here.
Read the Interview with Matt Dolan
More About Matt Dolan
Matt Dolan is a Senior Research Analyst focusing on medical technology, devices, and diagnostics. Matt has followed the industry for nearly a decade and has been the senior analyst at ROTH for about six years. His investment views have been cited in Barrons, Investors Business Daily, Wall Street Transcript, Forbes and BusinessWeek, as well as Bloomberg, Associated Press and Dow Jones publications, and he has spoken as an industry expert on Capitol Hill. Prior to joining ROTH Capital Partners, Dolan formed a trading group at the Chicago Board of Trade and Chicago Board Options Exchange and also worked as an analyst with a hedge fund in New York, specializing in small-cap medical device, biotechnology, and pharmaceutical companies. Matt received his Bachelor’s degree in Economics/Pre-Med from Northwestern University.