please tell me what compromise means? when both sides give up something to where both sides are satisfied right? well what the republicans are demanding is not negotiable. it's already law, upheld 40+ times including the supreme court. the republicans already got more into the ACA than what was originally wanted, now that isn't good enough. Taxes on earners of more than $250k and medical devices are what fund ACA. the republicans are demanding to get rid of the medical devices tax which which makes up 8-one-hundredths of the federal budget.
So why pick on medical devices?
Because if the health care law works as it's supposed to, sales of medical devices will get an added boost from the tens of millions of new patients covered by health insurance, all of whom will need care from providers and hospitals that will have to buy more devices.
If the law generates more profit for the medical device industry, the thinking goes, it can afford to help pay for the law. The added revenue boost is expected to help the $130-billion-a-year industry grow by high single digits as the law kicks in, according to a report from research firm IHS.
Among the six biggest companies in the Fortune 500, five had profit margins of roughly 15 percent or higher. So the White House figures that if the new law helps generate 15 cents in profits for every dollar spent on new devices, the industry can afford to spend 2.3 cents to help underwrite expanded coverage.
Obamacare should be delayed but not this way
Sen. John Barrasso, (R-WY), explains why he thinks there should be a delay in the individual health care mandate of the Affordable Care Act, but not necessarily at the expense of shutting down the government.
That makes sense. So why is this such a big issue?
Because the industry employs about 400,000 people—many of whom work and vote in Democratic congressional districts. Between them, the top five device makers are based in states with eight Senate Democrats, including Baxter International (Illinois), Medtronic (Minnesota), Stryker (Michigan), Becton Dickenson (New Jersey) and Boston Scientific (Massachusetts).
AdvaMed, the industry's largest trade group, has also argued that not all device makers generate Fortune 500-sized profits, and that the tax will hurt job creation, reduce investment in new medical devices and raise health care costs because some device makers will just pass along the tax cost.
Just in case those arguments didn't work, device makers have spent more than $150 million since 2008 lobbying to overturn the tax. The money was apparently well-spent. In July, 79 senators supported a resolution opposing the device tax, including 30 Democrats. A House bill to repeal the tax picked up 260 co-sponsors.
So why hasn't the tax been repealed?
Because the White House—with some justification—figures that if opponents of the Affordable Care Act succeed in picking off pieces of it, the law will quickly unravel. To answer complaints that the new law was a budget–buster, the White House added the tax as one of many offsets to cover the cost of insurance not covered by premiums paid by individuals or their employees. Start taking away those offsets and the law gets very expensive, very quickly.
More recently, both the president and Senate Majority Leader Harry Reid, D-Nev., have said they refuse to let the threat of a government shutdown become a weapon for one branch of Congress to hold the government hostage to their demands.
Reid apparently thinks he's got the votes in the Senate to stand his ground. A spokesman told The Associated Press said the Senate will reject any funding bill that includes a repeal of the device tax.
"Absolutely not," White House spokesman Jay Carney said when asked if President Barack Obama would support repeal.
So unless House Republicans back down, the government will run out of funding because of a stalemate over $2.9 billion—or about 0.08 percent of the $3.8 trillion federal budget.