Taxation of the Medical Device Industry for Health Care Reform: An Ethical Analysis

Abstract

Throughout the congressional debate over healthcare reform in 2009-2010, the sources of funding for the bill were hotly contested. Often lost amid these politicized discussions, however, was the question of whether the methods selected to finance the reform are actually the most ethically defensible. Upon evaluation, it becomes apparent that, while efforts to expand healthcare access are justified, a tax on the medical device industry is not the most equitable way to finance this goal. Such a tax would impede important innovations in medicine; even without the tax, the medical device industry might still be harmed by reform efforts. Thus, the negative consequences outweigh the benefits.