Health care reform could cost area jobs

WARSAW, IND. (WANE) - The latest health care reform proposal could come at a dire cost to northeast Indiana. It stems around what's called the "Medical Device Manufacturers Fee".

It could bring in some $4 billion a year to the overall health care fund, but that could come at a bigger cost to our area.

“There was clearly shock throughout the industry,” said Bob Durgin, President of the Indiana Medical Device Manufacturing Council.

That’s how Indiana's medical manufacturing community felt, after hearing the latest health care reform proposal.

“The consensus of the group is that it's going to stifle innovation in medical technologies which is one of the core businesses in the state economy,” Durgin said.

Congressman Souder along with Senators Bayh and Lugar have all expressed concerns about this bill, saying it could potentially squash both jobs and research efforts at some of Indiana's biggest companies.

“At MedTronics, we're opposed to this tax and appreciate the Congressman's efforts to bring to light the impact of the tax to the community,” said Jim Howie of MedTronics

“It isn't just an Indiana cluster, it's a world cluster,” Congressman Mark Souder said Friday.

Congressman Souder says that's because the medical companies in the Warsaw area are known and respected internationally for their innovation in health care. Those high-paying jobs have helped the community, like creating orders and jobs for suppliers.

“We are now in the fight of our lives about whether we're going to keep that cluster in Indiana and in Warsaw. Because depending on what happens in the health care debate, all of a sudden economics change in the world competitiveness of the orthopedic area,” Congressman Souder said.

“Not long ago the President was in Elkhart talking about unemployment, and here we are 40 miles south of Elkhart and we've been doing a great job of producing new employment in Warsaw and we have a tax that's probably going to put a damper on that significantly,” Durgin said.

Congressman Souder, along with Senators Bayh and Lugar, all sent a letter to Senator Max Baucus of Montana. He's chairing the Senate Finance Committee and this latest health care bill.