News in brief - Oct. 26, 2009

Medical device firms critical of proposed tax

An estimated $40 billion tax on the medical device industry, proposed in the health system reform bill passed by the Senate Finance Committee Oct. 13, would result in a doubling of the tax burden already faced by these companies and would likely contribute to a growth in overall health costs. That's according to a new analysis released by the Advanced Medical Technology Assn., a device company trade group based in Washington, D.C.

The analysis, released by AdvaMed on Sept. 30, concludes that the tax will divert economic resources away from the medical device industry and likely result in its contraction, which would have detrimental effects on the output of innovative technologies.

On Sept. 16, Finance Committee Chair Max Baucus (D, Mont.) introduced his version of a health system reform bill, and language proposing the 10-year tax on the medical device industry stayed in the final bill passed by the committee.

"These disturbing findings reaffirm that the $40 billion tax on medical devices over the next decade is neither sound health policy nor tax policy, will result in higher costs for patients and will cost jobs in this sector," said Stephen J. Ubl, AdvaMed's president and CEO. "We urge Congress to reject the $40 billion tax."

Back to top

Florida's Medicaid chief resigns

Holly Benson, secretary of the Florida Agency for Health Care Administration, resigned on Oct. 14, citing a desire to pursue other opportunities. AHCA is in charge of Florida's Medicaid program and is the state's main health policy and planning organization.

Florida patient advocates welcomed the news in hopes that the next Medicaid administrator would take a more patient-focused view of program reform, according to Laura Goodhue, executive director of the Florida Community Health Action Information Network. Goodhue said Benson was viewed by some as an administrator who defended the state's Medicaid reform pilot program despite concerns that it was not improving enrollees' care or access to it.

Benson said the agency has invested substantial time and effort in holding Medicaid managed care plans accountable. For example, the agency earlier this year asked the plans to come up with programs to improve their quality measure performance. "Already we're seeing substantial improvements," she said.

Florida Gov. Charlie Crist appointed Benson as AHCA secretary in February 2008. Benson, whose last day is Oct. 28, was formerly the director of the Florida Dept. of Business and Professional Regulation and for six years served as a Florida House representative.

Back to top

Gov. Schwarzenegger rejects physician work force study

California Gov. Arnold Schwarzenegger vetoed a bill on Oct. 12 that would have required state agencies to develop a health care work force plan.

"While I support the intent of the author and recognize the importance in developing California's health professions work force, this bill is unnecessary, and duplicative of efforts already under way," Schwarzenegger wrote.

California Academy of Family Physicians President-elect Jack Chou, MD, said the governor's statement was referring to existing agency information collection and reporting, not making a needed blueprint for the state. "Without action, or at least a plan of action, it's just talk."

Dr. Chou said the measure is designed to prod state leaders to address the state's primary care physician shortage. CAFP supported the bill. The California Medical Assn. did not take a position on it.

This content was published online only.

Back to top