In our recent publication, “The Impact of Tariffs on the Insurance Industry,” we explored how the sweeping tariff policy announced by President Donald Trump is affecting various insurance sectors. Building on that discussion, this piece delves into the specific challenges faced by Kentucky’s medical equipment manufacturing sector due to these tariffs.
The 25% tariff on imported materials such as aluminum and steel will increase production costs for medical equipment manufacturers[1]. This increase in production costs will likely lead to higher prices for medical devices, impacting hospitals, healthcare providers, and, ultimately, health plans.[1] Additionally, the tariffs may disrupt supply chains, causing delays and shortages in critical medical equipment, impacting the quality and length of healthcare consumers’ lives [1]. Insurers providing coverage to medical equipment manufacturers, healthcare providers, and patients will need to adjust their risk assessments and pricing models to account for these increased costs and potential supply chain disruptions.[1]
[1] Tariffs: AAH joins letter, F&P expects impact | HME News
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