The Affordable Care Act (ACA) of 2010 has shaken up the healthcare world and by extension, the biosciences industry. The landmark legislation had two goals: i) expand coverage to more Americans and ii) change how care is delivered in order to lower its cost.
The ACA's impacts vary across the pharma, biotech, medical device and diagnostics sectors, as well as based on company size and the type of products being sold. Innovator pharma companies are subject to new annual fees, lowered drug pricing and closure of the coverage "doughnut hole". Medtech companies have found the 2.3% medical device tax on U.S.-based product sales to be costly. Changes to laboratory reimbursement structures are wreaking havoc on medical testing labs and those that supply them. In addition, other ACA provisions like the Independent Payment Advisory Board, Physician Payment Sunshine Act, Medicare and Medicaid coverage, value-based purchasing and pricing changes, as well as payment bundling, have added to the law's damaging consequences for the bio-industry.
MichBio, like its national bio-industry partners, is concerned about the ACA's impacts on long term innovation, competitiveness and business growth. We continue to work with federal policy makers and elected officials to ensure innovators are able to continue to develop and manufacture life-changing products.