- http://www.massdevice.com/news/analysis-medical-device-tax-revenues-will-top-2b-next-year?page=show
- http://www.massdevice.com/news/whos-paying-medical-device-tax?page=show
- http://www.massdevice.com/news/medical-device-tax-ten-companies-line-whack?page=show
- http://www.massdevice.com/news/medical-device-tax-tab-now-305b?page=show
Provide names of other journalists involved.
Brad Perriello, Arezu Sarvestani, Brian Johnson
List date(s) this work was published or aired.
March 28 – April 2, 2012
Provide a brief synopsis of the story or stories, including any significant findings.
The impact of the 2.3% medical device tax, a key component of the 2010 Affordable Care and Patient Protection Act, has been a lightening rod of controversy for the medical device industry. More than 7,000 layoffs have been announced as a result of the tax and several companies are expected to shed jobs in the next 12-months as a result of the tax. However, very little impartial analysis of the tax’s total impact had been performed by independent organizations. For example, industry talking points under-reported the total amount of funds the tax would bring in over a 10-year period and several news outlets parroted those numbers out of convenience. Though our analysis, we were able to uncover the companies most likely to be affected negatively by the tax. More important, we were able to uncover the true total amount the tax would raise over a 10-year period. The revelation calls into question the accuracy of current government estimates and those on which the tax was originally sold to industry, Congress and the American public by the bill’s framers.
Explain types of documents, data or Internet resources used. Were FOI or public records act requests required? How did this affect the work?
We used SEC filings, public records from the White House Office of Management & Budget and the Joint Committee on Taxation in Congress. These documents enabled us to dig into the real numbers behind the tax.
Explain types of human sources used.
We conducted several interviews both on the record and on background, created several interactive graphics and got to the bottom of the story.
Results:
Our analysis revealed that both the federal government and industry officials were using inaccurate baseline assumptions about how much money the tax was going to raise. Those findings called into question the assumptions that were used to sell the tax to the American public. The truth is that the medical device tax will raise far more money for the feds than was initially projected. Further, our findings suggest that the medical device industry lobby did a poor job in its efforts to mitigate the tax during the construction of the Affordable Care Act.
Follow-up (if any). Have you run a correction or clarification on the report or has anyone come forward to challenge its accuracy? If so, please explain.
We have not had to run any correction. Our analysis provided an accurate assessment of the impact of the tax,
Advice to other journalists planning a similar story or project.
Don’t trust numbers provided by trade organizations or government agencies without performing your own analysis.