ObamaCare Could Become OutsourceCare

August 9, 2010

Democrats Continue to Defend ObamaCare, Even as Some of Its Key Features Could Lead to American Jobs Being Sent Overseas

Democrats talk a big game about opposing outsourcing.
However, the Democrats’ government takeover of healthcare could become a major contributor to outsourcing American jobs.
Despite the fact that ObamaCare could lead to outsourcing, Democrats have repeatedly voted against repealing or defunding the law, even just the provisions directly responsible for outsourcing.

Democrats talk a big game about opposing outsourcing:

OBAMA VOWED HIS STIMULUS WOULD ENSURE “THE JOBS AND INDUSTRIES OF THE FUTURE ARE CREATED RIGHT HERE IN THE UNITED STATES OF AMERICA”: “OBAMA: ‘Fourth, we’ll use our clean energy fund to invest over $1 billion a year to re-tool and modernize our factories and build the advanced technology cars, trucks and SUVs of the future – so that the jobs and industries of the future are created right here in the United States of America.’” (Senator Barack Obama, Remarks At A Campaign Event, Dayton, OH, 7/11/2008)

“DEMOCRATS TALK OUTSOURCING TO TRY AND SAVE THEIR OWN JOBS”:(Tom Curry, “Democrats Talk Outsourcing to Try and Save Their Own Jobs,” NBC News, 10/29/2010)

DEMOCRAT LEADER NANCY PELOSI HAS ALSO OFTEN SLAMMED OUTSOURCING: “Republicans have failed to put forward a plan to create jobs or end the outsourcing of American jobs, and continue to waste valuable time on bills to nowhere.” (“Pelosi Statement on President Obama’s Call to Extend the Middle Class Tax Cuts,” Democratic Leader Nancy Pelosi, 7/9/2012)

However, the Democrats’ government takeover of healthcare could become a major contributor to outsourcing American jobs:

“MEDICAL LOSS RATIO” CREATED UNDER OBAMACARE CONTRIBUTING TO OUTSOURCING:

OBAMACARE’S MEDICAL LOSS RATIO MANDATE COULD FORCE EMPLOYERS TO “MOVE MORE JOBS TO CHEAPER-WAGE COUNTRIES”: “Moreover, the health care reform law could prod insurers to move more jobs to cheaper-wage countries. The new law requires companies to spend 80% to 85% of premiums on medical care, limiting the amount available for administrative expenses.” (Don Lee, “Worries Grow As Health Care Firms Send Jobs Overseas,” Los Angeles Times, 7/25/2012)

OBAMACARE “MAY BE A CATALYST FOR NEW FORMS OF OUTSOURCING”:“The Affordable Care Act, by increasing the number of people in the health care system and changing the way delivery is funded, may be a catalyst for new forms of outsourcing.” (George Lauer, “Outsourcing May Grow As Health System Evolves,”California Healthline, 8/2/2012)

OBAMACARE’S HEART ATTACK TAX IS ALSO SENDING JOBS OVERSEAS:

OBAMACARE HAS A TAX ON CARDIAC DEFIBRILLATORS: “ ‘Taxmageddon’ isn’t only about the half-trillion-dollar blow to the economy that arrives in 2013 on the end of the Bush-Obama tax rates. Several of the Affordable Care Act’s worst tax increases kick in too, such as the new excise tax on medical devices. The 2.3% levy applies to the sale of everything from cardiac defibrillators to artificial joints to MRI scanners.” (Editorial, “Improvised Explosive Device Tax,” The Wall Street Journal, 5/28/2012)

JOBS HAVE ALREADY BEEN OUTSOURCED DUE TO THE HEART ATTACK TAX:“Cook Medical is no longer planning to open a U.S. factory a year. Boston Scientific, planning for a more than $100 million charge against earnings in 2013, recently built a $35 million research and development facility in Ireland and is building a $150 million factory in China. (Capital goes where it is welcome and stays where it is well-treated.) Stryker Corp., based in Michigan, blames the tax for 1,000 layoffs. Zimmer, based in Indiana, is laying off 450 and taking a $50 million charge against earnings. Medtronic expects an annual charge against earnings of $175 million.” (George Will, “Taxing Jobs Out of Existence,” The Washington Post, 5/9/2012)

INDIANA COMPANY CANCELLED PLANS TO OPEN FIVE NEW PLANTS DUE TO HEART ATTACK TAX: “Cook Medical Inc. had been planning to open five new manufacturing plants over the next five years in small communities around the Midwest, including Indiana, but has shelved those plans because of the hit it will take from a new U.S. tax on medical devices.” (J.K. Wall, “Cook Medical Shelves Midwest Expansion Plan,” Indiana Business Journal, 7/27/2012)

COMPANY NOW SAYS “THEIR FUTURE GROWTH WILL BE FOCUSED OVERSEAS”: “Since then, Cook officials have said their future growth will be focused overseas. Cook already has production facilities in Ireland, Denmark and Australia.” (J.K. Wall, “Cook Medical Shelves Midwest Expansion Plan,” Indiana Business Journal, 7/27/2012)

MEDICAL DEVICE ASSOCIATION SAID OBAMACARE’S HEART ATTACK TAX COULD FORCE “43,000 JOBS OVERSEAS”: “The Advanced Medical Technology Association (AdvaMed) released a report Wednesday that says device-makers might ship 43,000 jobs overseas once the tax takes effect in 2013.” (Sam Baker, “Device-Makers Say Tax Will Cost 43,000 U.S. Jobs,” The Hill‘s ” Health Watch,” 9/7/2011)

MEDICAL DEVICE COMPANY LEADERS THINK NEW TAX WILL HURT MANUFACTURERS: “Executives in the medical device manufacturing industry predict that a new excise tax and the burden of its related compliance costs will hurt their companies’ bottom lines, according to a survey conducted by KPMG LLP, an audit, tax, and advisory firm.” (Chris Reidy, “KPMG Survey: New Tax Could Hit Medical Device Companies Hard,” The Boston Globe , 4/18/12)

40% MEDICAL DEVICE COMPANY LEADERS EXPECT TO RESORT TO LAYOFFS:“According to the survey of 190 financial executives from the medical device manufacturing industry, 40 percent of respondents said their companies are already contemplating actions such as price increases and cost reductions, including possible layoffs, as a way to stay competitive.” (Chris Reidy, “KPMG Survey: New Tax Could Hit Medical Device Companies Hard,” The Boston Globe , 4/18/12)

13,303 SMALL- TO MEDIUM-SIZE MEDICAL DEVICE FIRMS IN U.S., OR 91% OF ALL MEDICAL DEVICE COMPANIES COULD BE AFFECTED: (Michael Ramlet, Robert Book and Han Zhong, “The Economic Impact of the Medical Device Tax,” American Action Forum, 6/4/2012)

Despite the fact that ObamaCare could lead to outsourcing, Democrats have repeatedly voted against repealing or defunding the law, even just the provisions directly responsible for outsourcing:

98% OF HOUSE DEMS VOTED IN JAN 2011 AGAINST REPEALING OBAMACARE AND STOPPING IT FROM OUTSOURCING JOBS: (Roll Call 14, Clerk of the U.S. House, 1/19/2011)

96% OF DEMOCRATS VOTED AGAINST DEFUNDING OBAMACARE’S MEDICAL LOSS RATIO PROVISION THAT IS OUTSOURCING JOBS: (Roll Call 110, Clerk of the U.S. House, 2/18/2011)

96% OF HOUSE DEMS VOTED AGAINST CUTTING OFF FUNDING TO IMPLEMENT OBAMACARE’S OUTSOURCING PROVISIONS: (Roll Call 270, Clerk of the U.S. House, 4/14/2011)

77% OF HOUSE DEMOCRATS VOTED AGAINST REPEALING THE HEART ATTACK TAX THAT COULD LEAD TO OUTSOURCING: (Roll Call 361, Clerk of the U.S. House, 6/7/2012)

97% OF HOUSE DEMOCRATS VOTED AGAIN THIS JULY TO PREVENT OBAMACARE REPEAL: (Roll Call 460, Clerk of the U.S. House, 7/11/2012)