The Supreme Court has weighed in and apparently upheld the most sweeping healthcare law in the history of the United States.
The effect of the ruling on Obama’s healthcare bill, released on Thursday, accepts that individuals can be required to purchase health insurance, and the Affordable Care Act (ACA) remains in place. It is considered a "tax" in the 5-4 ruling by the justices.
The ruling will have definitely implications for the upcoming presidential elections with Democrats largely supporting the court’s decision – upholding the mandate – and Republicans joining with many business leaders in seeking to have the law drastically reformed or somehow eventually withdrawn.
The medical device industry was reportedly watching the U.S. Supreme Court decision carefully.
Under the health insurance reform, medical device makers must pay an excise tax of 2.3 percent from 2013, according to a recent report from Zacks. Observers of the medical device market believe manufacturers are relatively confident about their future – with or without the ACA.
One major device maker, Medtronic, e-mailed a statement to TMC shortly after the Supreme Court ruling was released.
“We began planning for implementation of the measures in the Affordable Care Act (ACA) long ago,” it read. “We have been engaged in payment and delivery system reform changes that started before passage of the ACA in the private sector and that will continue. We remain committed to executing on our key strategies which will allow us to succeed in any environment.”
In addition, AdvaMed President and CEO Stephen J. Ubl released a statement on Thursday which said “AdvaMed supported goals of healthcare reform consistent with our long-held principles.”
“We have consistently opposed the $29-billion medical device tax because of its damaging effects on economic competitiveness, jobs and the research and development needed to find tomorrow’s treatments and cures,” he added. “The House has already voted to repeal the device tax, and we are heartened by the number of senators who have said they oppose the tax.”
“We will continue to work with policymakers on both sides of the aisle to achieve this goal,” Ubl said.
In its report, Zacks also said the act required healthcare providers to switch to electronic health records if they were keeping paper records. Zacks believes the move would likely take place even without the act. Companies in this sector include: athenahealth, Cerner Corporation and Allscripts Healthcare Solutions.
Meanwhile, many corporate leaders appear skeptical about the health reform act as it stands now.
“While we respect the Court's decision, today’s Supreme Court ruling does not change the reality that the healthcare law is fundamentally flawed,” argued U.S. Chamber of Commerce President and CEO Thomas J. Donohue. “Left unchanged, it will cost many Americans their employer-based health insurance, undermine job creation, and raise healthcare costs for all.”
“It is imperative that policymakers and the business community now work together to develop and support genuine reforms that control costs, improve access, ensure quality and promote wellness,” he added. “Given the Court's decision, the need for action has never been greater.”
President Obama praised the court's decision, saying he backed the bill because he believed "it was good for the country."
"It's time for us to move forward," Obama added. "The highest court in the land has now spoken."
The commander and chief said some improvements to the Act are possible but warned against re-fighting past political battles.
To review the Supreme Court’s decision, click here.
Edited by
Braden Becker
