A 2.3% excise tax targets medical device makers beginning 2013 thanks to the health care bill. This will lead to a reduction in jobs and cuts in new technology development.

The medical device industry is important to Indiana and in particular the northeast region, which is a major player in producing orthopedic devices.

There are about 300 medical device companies in Indiana employing 18,500 Hoosiers directly and another 44,500 in supporting roles, according to the Indiana Medical Device Manufacturers Council. The state, said the council, ranks second only to California in production and output associated with medical equipment and supplies.

“Under the current (tax) structure,” the national trade association said, “many (smaller) companies will owe more in taxes than they generate in profits, requiring companies to lay off employees, cut R&D budgets and slow the development of new therapies that will improve the quality of care for all Americans.”

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