It’s an industry that lives or dies based on test procedure numbers and thus the growth in the number of persons with health care coverage is good news for IVD.
New York, NY (PRWEB) August 26, 2013
On the whole, Patient Protection and Affordable Care Act is expected to benefit the IVD and clinical lab test industry slightly, according to Kalorama Information. Sales are expected to rise an extra 1.3% more per year, in the next five years, than would have otherwise been seen without the law, according to a recent report from the firm. This finding was made in a recently published Kalorama Information report, “The Impact of Healthcare Reform (PPACA) On the U.S. IVD Market”.
The healthcare market research says the most significant IVD and clinical lab sales drivers resulting from the PPACA will be an expansion in the number of insured U.S. persons, increased utilization of tests related to nosocomial infections, and new coverage of wellness and prevention programs. Kalorama also notes the bill contains market restraints as well, and warns many questions about implementation and future effects remain.
“The reform taketh away from IVD but you could say it ‘giveth’ a little more,” said Bruce Carlson, Publisher of Kalorama Information. “Several key provisions of the PPACA, in combination with favorable population demographics, will stimulate IVD product sales. It’s an industry that lives or dies based on test procedure numbers and thus the growth in the number of persons with health care coverage is good news for IVD.”
The Patient Protection and Affordable Care Act (H.R. 3590) passed in 2010 is a complex legislation that affects virtually every aspect of healthcare and many of its provisions are beginning to take effect now. The overall objective of the PPACA is to expand access to health care coverage for most U.S. citizens and legal residents by requiring individuals to have coverage and employers to either provide coverage or pay a penalty that would support coverage from a pool of public funds.
The report examines the proposed positive developments for the IVD industry resulting from PPACA such as an expansion in the number of insured U.S. persons, increased utilization of tests related to nosocomial infections, product innovation resulting from value-based pricing, and new coverage of wellness and prevention programs. The report also examines legislation components that might present challenges, such as the medical device excise tax and changes to Medicare reimbursement. Despite the known provisions, there are some unknown factors with healthcare reform implementation, also detailed in the report.
“Many issues have not yet been fully addressed,” said Carlson. “These include the future of the medical device tax, Medicare payment rates reform, state expansion of Medicaid, and public confusion about the PPACA.”
The report, “The Impact of Healthcare Reform (PPACA) On the U.S. IVD Market”, details the specific provisions of healthcare reform legislation and describes the current status. The report contains sales estimates for the historic 2012 period of the IVD market and forecasts are provided through 2022. The report also presents overall procedure volumes for IVD and laboratory tests. The report than analyzes the impact of various PPACA provisions on the IVD market. The report can be found at: http://www.kaloramainformation.com/Impact-Healthcare-Reform-7728373/ .
About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog.