Invacare CEO would like to talk health care with president

ELYRIA — When President Barack Obama comes to Lorain County on Jan. 22, Invacare Corp. Chairman and Chief Executive A. Malachi Mixon III would like to bend the president’s ear on health care reform.

Mixon

Mixon

A proposed $2 billion tax on medical device manufacturers has already resulted in a hiring freeze, forced elimination of merit raises and caused suspension of 401(k) matching at Lorain County’s largest private employer, Mixon said.

“I would be thrilled to meet with the president,” Mixon said Tuesday. “I’d ask him, ‘Please help remove this tax.’ ” The visit is part of the “White House to Main Street Tour” in which Obama plans to meet with workers, local CEOs, small business owners and leaders about the economy and jobs.

Mixon said he doesn’t know the president’s agenda but hopes Obama will have time to meet him or visit Invacare.

Removal of the device tax from the compromise SenateHouse health care legislation could help save jobs, Mixon said.

“These things are carefully orchestrated,” Mixon said. “Whether we get invited or not, who knows?”

After the Senate passed its version of health care reform Dec. 24, Mixon said the proposed tax could force Invacare to move 1,300 Ohio jobs to Mexico or China.

If imposed, the tax could cost Invacare an estimated $11 million to $12 million, Mixon said.

But the proposed device tax is not deductible, so Mixon said Invacare would have to earn $15 million to $16 million to pay the federal, state and city taxes in order to earn the $11 million to $12 million.

Overall, the company reported 2008 earnings of $38.6 million.

In the Senate version of the bill, Mixon said Invacare would have to start setting aside money right away to pay the tax in 2011, while the House version delays the tax until 2013.

Patricia Stumpp, Invacare’s senior vice president of human resources, said some 1,200 people manufacture wheelchairs and work in customer service, technical service and parts fulfillment at Invacare’s headquarters and plant in Elyria and North Ridgeville, while approximately 100 employees work in billing in Akron.

Contact Cindy Leise at 329-7245 or cleise@chroniclet.com.



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