Winners, Losers in Senate Health Bill

Democrats in the Senate cleared the first procedural hurdle for sweeping healthcare reform Saturday by voting to open debate on the historic legislation.

The Senate debate due to start on Nov. 30 is expected to last for at least three weeks.

Senate Democrats want passage by the year-end but the bill faces challenges before a final vote. If approved, it would have to be reconciled with a bill already passed by the House and approved again by both chambers before it could be signed into law by President Barack Obama.

The $849 billion Senate bill aims to extend coverage to tens of millions of uninsured and to cut costs in the healthcare system, which accounts for one-sixth of the U.S. economy. The measure looks to several industries to help finance it.

Following are some of the health industry winners and losers based on the Senate leadership’s bill.

WINNERS…
DRUGMAKERS
DEVICEMAKERS
HOSPITALS
BRAND BIOLOGIC DRUGMAKERS
LOSERS…
HEALTH INSURERS
COSMETIC SURGEONS, PRODUCT MAKERS

The bill imposes a 5 percent tax on elective cosmetic procedures such as face-lifts, breast enlargements and tummy tucks in an effort to raise roughly $5 billion. The excise tax would be collected by surgeons and other providers and it could reduce demand for their services. That in turn could cut sales for companies such as Allergan Inc. and Johnson & Johnson’s Mentor unit that make breast implants, wrinkle fillers and other cosmetic medical products.

PHARMACY BENEFIT MANAGERS

(Reporting by Susan Heavey; Editing by Arshad Mohammed and Sandra Maler)