Today, I'm knocking out a few responses to claims made by the left on my recent YouTube video.
The left seems to be clueless on how the Medical Device Tax in Obamacare raises our costs. The government charges the manufacturer a tax on the medical items. Pumps, catheters, medical supplies, walkers, so forth and so on. This increases the cost of the manufacturer to produce these items. Sure, sure, the left argues that it is *ONLY* 2.3% and I've even had a few tell me that it will go away. Is that last statement not the funniest thing you have ever heard? Have you ever known a tax to go away and NOT increase? And what is 2.3% of a multi-billion dollar industry?
I digress, so this adds an extra 2.3% onto the cost of manufacturing. The manufacturer then passes this cost onto the home health companies and other such distributors of the medical devices being manufactured. These companies then charge the insurance companies more for these medical devices. Where does the insurance company get the money to pay the higher prices for these medical devices? By way of higher premiums, copays, deductibles and out of pocket maximums.
I like to use this example with my kids. You own a business making cookies. You sell your cookies for 5 cents each and your profit is 3 cents per cookie. The government comes along and says you must pay a 2 cent cookie tax on every cookie sold. What do you do? Do you keep the price of your cookies the same and thus only make 1 cent per cookie sold or do you pass the tax along to the consumer by increasing the cost of your cookie to 7 cents each and thus keeping your profit at 3 cents per cookie? It's a no brainer.
I've looked at our EOBs and the insurance company is paying more for the medical supplies than they have in the past. And that's how I know it's Obamacare raising the cost of medical devices!