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Upholding Of Health Care Costs Cook In Medical Device Tax

By Shameka Neely

Posted June 29, 2012

The U.S. Supreme Court has upheld virtually all of the Affordable Care Act – including a provision which will tax the sales of medical devices. Leaders at a Bloomington manufacturer who say the decision is expensive, but won't lead to any layoffs in the U.S.

The Supreme Court's decision allows a tax imposed in the law on FDA approved medical devices. Bloomington-based Cook Medical had been opposed to the tax and working with the state's congressmen in an attempt to repeal it. Board Chairman Steve Ferguson says though the tax will cost the company more in the long run, employees don't have to be concerned for their jobs.

"Well Cook has never laid off anyone in the United States and we do not plan to do that so from that stand point that will not be the way we address it. We will address it through expansion plans other cost savings, but not in terms of layoffs," Ferguson says.

Ferguson estimates the medical device tax will cost his company more than $20 million in the first year it is implemented. The levy goes into effect in 2013.

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Upholding Of Health Care Costs Cook In Medical Device Tax

By Shameka Neely

Posted June 29, 2012

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