Is Obamacare Killing Medical Device Startups?
Published: Dec 07, 2012
Venture capitalists pumped less money into U.S. medical device companies last quarter than in any similar period since 2004. And Elizabeth MacDonald of Fox Business has identified the culprit: President Obama. The issue, MacDonald argues, is a new 2.3% excise tax to be paid by medical device companies on gross sales. It's part of the Affordable Care Act (a.k.a. Obamacare), and is expected to generate around $29 billion in revenue over its first decade (beginning on January 1).