First, Do No Harm The Impact of the Affordable Care Act on Massachusetts’ Medical Device Industry by Josh Archambault and Xiaofei (Jackie) Zhou As part of the financing for the Patient Protection and Affordable Care Act (PPACA), a new excise tax was imposed on medical devices, effective January 1, 2013. This tax is of particular interest to Massachusetts policymakers and citizens because of the number of medical device companies that do business in the state and the number of jobs that are supported by the industry. According to a 2011 study by Deloitte, over 400 companies in Massachusetts focus on medical devices, making the Commonwealth the state with the second-most employees in the industry – 24,268 as of 2008.2 A 2010 report by The Lewin Group estimated the spin-off effects of the industry to be 82,500 additional jobs in related industries.

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20001April 12, 2013April 12, 2013