3 Medical Device Stocks With Solid Potential To Buy Now

The Medical Device industry has been riding high on optimism of late, courtesy of the Senate’s latest decision to lacerate the Affordable Care Act (ACA) by the end of July. In a bill passed on May 4, the House voted to eliminate the expensive Cadillac health plans and the ‘burdensome job-killing’ medical device taxes that had been enacted previously, under the ACA, widely known as Obamacare.

Secondly, the Patient and State Stability Fund (PSSF) amendment in the ‘Trump-care’ regime looks optimistic at the moment. Per the postulates of the PSSF, the government will set aside $100 billion for over 10 years as a ‘risk-sharing’ program to provide payments to health insurers for individual claims of the prospective patients.

We believe the sharing of the cost burden by the government, if anything, would result in lower premiums, broadening the customer base for the Medical Instrument companies that would have otherwise suffered owing to their exorbitant products and services.

Woes Still Remain

The ‘Trump-card’ has finally started to act in favor of the Republicans as it promised to exterminate the infamous 2.3% medical device tax. However, the latest revelation by some moderate senators to ‘keep some of its taxes,’ has once again started to create quite a stir in the medical device space.

Also, despite the solid prospects of the Obamacare pullback, the latest ‘Trump-care’ module has failed to impress Americans, thanks to a report by NBC News that reveals unfavorable poll results by the Kaiser Family Foundation. The poll suggests that 55% of the Americans have registered votes against Trump’s latest healthcare module.

Meanwhile, ‘Trump-care’ has proposed a hike in the U.S. FDA medical product user fee. Under Trump’s proposed budget, medical device user fees are expected to be around $439 billion in 2018, which is almost three times the current level. This is a huge burden for the digital health industry and small companies in the medical device space.

1 2 3
View single page >> |

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.