The medical devices industry, which was once acclaimed for its high-paying jobs and research and development opportunities, has been subject to the much controversial 2.3% medical device excise tax. The MedTech fraternity is leaving no stone unturned to permanently do away with the dreadful tax — but has not been able to.

Interestingly, the year 2017 has been quite an eventful one, courtesy of a series of socio-political occurrences that favored the space. The year witnessed the much talked-about election wherein Donald Trump took over the nation’s charge as President. Not only were the new administration’s health schemes thoroughly criticized but the reforms that were brought in taxation schemes became a much talked-about subject. Needless to say, these developments kept investors on their toes.

Standing at the threshold of 2018 it is imperative for the investors thus to find the means which can dilute the macroeconomic woes and help them gain more. But before guiding you to make prudent investments for the year let’s take a look at the various developments that have taken place within the space and see what awaits the investors in the coming year.

Health Policy Qualms to Continue in 2018:It has already been a year since trump became the President.However, his policies continue to be the most debated issue in the space. The new administration’s Obamacare ‘repeal & replacement’ effort through Congress and the latest ‘Executive Order’, which apparently has been designed to provide quality healthcare to the nation at affordable rate, has already posed a serious threat to the healthcare community.

Per critics, this order, forsaking the consideration of pre-existing health conditions has been designed to push people into “junk” insurance plans. The American Hospital Association has put forward an extremely bearish view on the executive order related to promote health care choice and competition. The association apprehends that the executive order will solely allow health insurance plans that cover fewer benefits and give lesser consumer protections.

Tax-Reform May Hit Hard in 2018: According a report by Business Insider, the Republican tax plan repeals an itemized deduction that applies to healthcare expenses. If the new bill gets implemented, families with high healthcare expenditure will be impacted as these expenses will no longer be deducted from their taxes. Hence, people will no longer be interested in expensive healthcare or MedTech procedures.  

A report by The Hill says that the Section 4303 of the Republican tax bill plan imposes a 20% excise tax on goods manufactured overseas by subsidiaries of U.S. companies. Under the U.S. tax code, Puerto Rico is considered a foreign land which implies that U.S. parent companies will have to pay excise taxes if they purchase from their subsidiaries in the island. In this regard, the FDA recently found that around 30% of Puerto Rico’s gross domestic product was driven by pharmaceuticals and medical devices in 2016. Undoubtedly, the latest tax plan has created an uproar among MedTech players who might witness a huge reduction in their turnover with the approval of the bill.