Some medical-device companies faced with a new tax meant to help finance the health law are hoping someone else will pick up the tab: their hospital customers.
Companies including feeding-tube supplier Applied Medical Technology Inc. and respiratory-valve maker Hans Rudolph Inc. quietly added new surcharges or warned hospitals of price increases to cover the new 2.3% tax on device sales that went into effect Jan. 1, according to letters and invoices from nine manufacturers sent to hospitals that were reviewed by The Wall Street Journal.
"As a result of this law, we will be forced to charge the 2.3% federal medical device excise tax to you," said a letter to hospitals from Cardica Inc., a maker of heart-surgery tools. A senior Cardica executive declined to comment.Read the rest of the story HERE.
The bottom line is this. If hospital's costs go up more, they're going to charge more. Either you'll pay more directly or your insurance company will....and where do you think they'll look to cover this additional expense?
Can you say.....Higher Premiums?