GAO: Medical device profits increasing

Medical device companies have seen their profits continue to increase, even after a new tax from ObamaCare, according to a federal watchdog.

The Government Accountability Office looked at 102 medical device companies and found a roughly 44 percent increase in profits from 2005 to 2014 — from $11.4 billion to $16.5 billion.

{mosads}A bipartisan group of lawmakers has sought to roll back the 2.3 percent medical device tax under the Affordable Care Act, which went into effect in 2013. Those opponents, and medical device makers, say that the government shouldn’t tax a relatively new and growing industry

Democrats who oppose the tax have said they want to find other offsets to replace the lost revenue.

One of the tax’s biggest supporters, Senate Minority Leader Harry Reid (D-Nev.), requested the GAO examination. The tax’s backers say that ObamaCare will help medical device companies by increasing demand for their products.

While the GAO noted the increased profits and sales for the industry, it stopped well short of saying that the tax hadn’t hurt medical device makers.

“This is because any changes in net sales and net profits could be due to factors aside from PPACA implementation, such as mergers and acquisitions, the introduction of new products, and product recalls,” the report said.