Paulsen’s home state of Minnesota is is home to device-maker St. Jude Medical (NYSE: STJ) and Medtronic (NYSE: MDT). IHI includes a 13.9% tilt toward MDT and 4.1% in STJ. XHE holds 1.9% in STJ and 1.7% in MDT.
The bill, though, does not include a way to make up for the lost tax revenue of $26.5 billion from 2016 through 2025. However, Paulsen argued that the measure’s lack of a budget offset is not without precedent, and Republican leadership may include an offset.
President Barack Obama has not openly stated he would veto the bill if passed through both the House and Senate. Additionally, Paulsen believed that “many in his own party are supportive of the repeal” – the bill has 281 co-sponsors, including 40 Democrats.
Nevertheless, many Democrats are loath to play around with components of the Affordable Care Act since they argue it could open the flood gates for total reforms. Additionally, Democrats contend that devices manufacturers are enjoying a larger customer base due to Obamacare, so they can afford the extra taxes.
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Max Chen contributed to this article.