…and it’s not pretty. The costs of Obamacare are starting to come home to roost, now that its various mandates are starting to take effect. Gerri Willis has a listing; this is a brief summary.
The requirement that lets grown adultschildren stay on mummy and popsy’s health insurance policy until they’re 26 will cost $3,400 per grown adultchild per year. But there’s an additional cost: employers are beginning to not include such policies at all in their benefits package; they’re too expensive. There’s yet another cost: colleges where Buffy or Junior might go—and might have gotten coverage as students—are beginning to drop the policies: they’re too expensive.
But wait. There’s still the little 26-year-old tyke’s pre-existing condition that’s required to be covered. Except that coverage still is hard to find. Willis writes
Insurers in 20 states have given up offering child-only insurance plans.
Those child-only plans matter because that’s all that’s left after those other policies have been withdrawn from the market. RTWT.
There’s more, though. Medical equipment manufacturers are being forced to cancel plans for medical equipment manufacturing in the US. Cook Medical, the US’ largest privately held maker of medical devices, with annual revenue of more than $1.8 billion and employment of around 4,000 people in the Bloomington, IN, area and 10,000 worldwide, is an example.
Cook says it will have to cancel plans to build an additional five manufacturing plants, each employing 300 people when those plants were scheduled to open. The medical device tax that’s another important part of Obamacare, will cost Cook Medical $20 million this year alone—that’s the price of one of those additional manufacturing plants.
It gets worse—or better, if you like the Obamacare move. Follow the Fox News link to the larger article and video at Indianapolis Business Journal. Executive Vice President of Strategic Business Units at Cook Medical, Pete Yonkman, described one of those unintended consequences that are so monstrous and so ubiquitous in Obama’s centerpiece. With this medical device tax, Cook can’t economically bring a new technology to patients and hospitals in the US; Cook instead is looking to Asia. Moreover, as this technology is developed in Asia, that’s where the expertise will be developed. As a consequence of that, that’s where the engineering, and then manufacturing, jobs will appear:
It’s important to have that [engineering and scientific expertise] around your manufacturing base[.]
And this: Yonkman noted that
One of the fastest growing areas in our company every year is always our regulatory team having to deal with the increased burden coming from…increased regulation….
A medical device manufacturer’ fastest growing area has nothing to do with its device manufacturing or sales.
And finally this: Obamacare’s medical device tax is a 2.3% tax on medical devices; however, the impact is greater than just this immediate 2.3%. Yonkman said the impact on actual earnings is another 15%.
He’ll stop that from being built.