Bills Would Repeal Medical Device Tax

WASHINGTON — On Tuesday, companion bills were introduced
in the House and Senate to repeal the medical device tax included
in the Patient Protection and Affordable Care Act.

Rep. Erik Paulsen, R-Minn., who proposed a similar
measure last year, introduced the Protect Medical Innovation
Act in the House, while Sen. Orrin Hatch, R-Utah, introduced the
Senate bill. The legislation would repeal the 2.3 percent excise
tax on medical device sales included in PPACA as a way to help pay
for health reform.

Set to begin in 2013, the tax is estimated to raise $20 billion
over 10 years. HME leaders have said the tax would send more of the
industry’s manufacturing jobs offshore and curtail research and
development.

According to a statement from Paulsen, who co-chairs the House
Medical Technology Caucus, “Taxing the medical technology industry
to the tune of $20 billion will only stifle growth, innovation, and
access to the life-saving technologies U.S. device companies
produce.” Hatch, ranking member of the Senate Finance Committee,
echoed the sentiments in a statement, saying the tax would “cripple
an important engine of opportunity, job growth and innovation,
while hurting the advancement of technologies essential to
improving patient care.”

The Medical Device Manufacturers Association applauded the
legislation in a statement of its own.

“The United States is the global leader in medical technology
and innovation, and the repeal of such an onerous tax will help us
maintain our position,” said Mark Leahey, MDMA president and CEO.
“It is crucial that we support entrepreneurs and engineers who
continue to create quality jobs and physicians who focus on
improving the quality of life for patients, especially in an
increasingly competitive global marketplace.

“When our nation’s job-creators face a future with additional
taxes and an unpredictable regulatory environment, growth and
innovation are stifled. Instead, we need policies that provide
incentives for hiring employees and investments in research and
innovation.”

The MDMA also said the tax would “disproportionately harm small
businesses that develop the majority of innovative and cutting-edge
technologies.”