business law BY kennY724162 li. Stakeholder One: Congress (Democratic Party) Since Democratic Party is the one who proposed this law, most Democratic senators supported the medical device tax law. Obviously, this law will make the implementation of Affordable Care Act become more easier. The Affordable Care Act will be successfully only when government has enough money. Moreover, although many medical device manufacturers asserted that this tax is harmful to their businesses, these senators think that this tax Just a small sacrifice from bigger revenue.
After Affordable Care Act start to work, there are more than 30 million eople who will gain health coverage under Affordable Care Act. In other words, all these people will become potential customers to medical device industry. Therefore, the increase revenue from these potential customers will offset the tax cost 1 . Furthermore, we should consider the influence of this tax policy on other industries except medical device industry. Affordable Care Act is a very complicated project and influential to many industries.
There are also some tax regulation to industries such as hospitals and health insurance companies. Democratic Party have to consider that he repeal of medical device tax may trigger the serial effects because the other industries such as insurance companies and hospital will try to repeal the tax they have to pay as well. 2 Furthermore, medical device industry is one of the most profitable industry in United States. Passing this law not only make the Obamacare operate easier but also help U.
S. government reduce the financial deficit. “Fracturing on anything related to the Affordable Care Act is one of the most moronic moves Democrats could make,” said a Senate Democratic aide, who requested anonymity to speak candidly. Repealing the medical device tax is playing into House Republicans’ pathological obsession with dismantling the law at any cost. This is a more than $30 billion handout to one of the most profitable industries in the country when America can barely pay its bills.
Device repeal could cause a domino effect with the insurance industry and big pharmaceutical companies wanting special carve outs too. If you care about the deficit or the debt, this giveaway to the device industry is blatant hypocrisy. “3. To sum up, in order to make sure the success of Affordable Care Act and cash flow for financial aid. Democratic Party apparently is the main supporter of this law. iv. Stakeholder Three: Patients In United States, the cost for medical care is pretty high. Actually, it is sometimes ten times than third world countries.
Therefore, the expense for health care could be a very heavy burden to low income workers or employees. Under the Affordable Care Act, the cost of medical car will become much more affordable. Furthermore, the economist Brigitte Madrian showed nearly two decades ago that many workers were “locked” into their Jobs because they had health insurance on a current Job and ight not be able to maintain that coverage if they switched Jobs. 4 The Affordable care Act would Tree workers to move to anotner company or to sta rta Duslness.
Besides, the better health care insurance can encourage people to be more productive in their Jobs because they don’t need to worry about the medical care expense too much. The study showed that people often ignore the health problems that will influence their performance because they are uninsured or underinsured. 5 For these reasons, patients who will gain benefits from the Affordable Care Act will upport the medical device tax policy since this tax influence the feasibility of Affordable Care Act greatly.
Some patients, however, may have concerns about the medical device tax. If the government finally decided not to repeal the medical device tax law, the medical device manufacturers may increase the products’ price accordingly. Therefore, the patients who need medical device heavily for curing diseases will suffer huge expense increase. These patients would prefer to repeal this law because the benefits they gain from Affordable Care Act cant offset their xpense from medical device.
In general, the most clear thing is that the current health care system is not good. The Affordable Care Act is the most serious effort ever made to address the myriad flaws in health care today. If ACA works successfully, the new health insurance policy will be much better than before. It will be beneficial to most people in United States. I think most patients will be happy to see this tax law passed because the tax government gain from medical device companies is a important component to make sure the success of Affordable Care Act.